However, there was just 602,000 purpose-built student accommodation (PBSA) properties available in the 2017/18 academic year. This means that over one million students cannot access high-quality PBSA, the type of student accommodation demanded most in the UK.
But where should buyers look to find a UK student property investment that will deliver you the highest returns? Right now, you should be focusing your attention on Cardiff.
Three universities – and a significant international student community
Education is key to Cardiff’s economy. The city is home to three universities:
- Cardiff University
- Wales’ only Russell Group
- 24% international students
- Highly regarded research institution
- Cardiff Metropolitan University
- University of South Wales
37,500 students’ study in Cardiff each year, which includes 8,100 international students. The vast majority study at the prestigious Cardiff University, the city’s ‘Russell Group’ institution.
Cardiff University is ranked in the world’s top 100 by the Academic Ranking of World Universities 2017. It’s helped to drive international student numbers, with Cardiff University having seen a 31% and 18% uplift in EU and non-EU students respectively since 2010/11.
This growth is having a dramatic impact on Cardiff’s student property market. As the number of international student numbers increase, so does the demand for high-quality PBSA, providing homes close to university and Cardiff’s key city centre landmarks.
And this is making it the UK’s strongest investment location for student property.
Cardiff: A market of huge investment potential
- At 8.5%, Cardiff had the fastest annual student rent growth in 2017/18 of any UK city
- The UK average rent growth during this period was just 2.55%
- The city has some of the UK’s highest annual yields from student property
- Average yields in Cardiff are currently being recorded at 5.59%
- The UK average is just 4.72%
- Significant undersupply of PBSA
- 25,354 students in Cardiff cannot access the modern, purpose-built homes they are demanding
Underlining the demand for PBSA homes, Cardiff has seen a 137% increase since 2010/11 in the number of people living in private sector PBSA properties, while the number of students living in old fashioned, university-provided residences has fallen.
Crucially, students in Cardiff want to live in the city. With Cardiff University located in the key ‘CF10’ postal code, just minutes from the city centre and its shops, restaurants and landmarks, this is the area where students want to live.
Yet the vast majority of students currently live in old-fashioned, residential areas of Cardiff away from the universities and city centre. In the Cathays district, for example, 70% of residents aged 16-74 are students.
It means that now, more than ever, there is a huge demand for high-quality PBSA in Cardiff city centre – creating a significant investment opportunity for you in the UK’s strongest student property investment city.
Vita Student Cardiff – The development the city’s students have been waiting for
Bridging this gap between work and play, Vita Student Cardiff is the location they are demanding – a location strategically chosen to increase your rental returns:
- Next to Cardiff University
- Within 5 minutes’ walk of Cardiff Castle, Town Hall, National Museum and main shopping streets
- In the very heart of the CF10 city centre postcode, an area with an extremely low supply of student property