Investments in Student Accommodation and Care Homes increase amid Coronavirus uncertainty
According to Property Week, there has been a substantial growth in the investment into alternative assets such as student accommodation properties and care homes even amidst the Covid-19 outbreak.
These investment opportunities allow investors to diversify their portfolio by investing in a property that breaks away from the three most traditional forms; residential, commercial and industrial.
The growing number of international students attending UK universities each year will provide investors with the market to benefit from consistent rental demand and high yields. The benefit of an aging population also indicates that care homes are buying tenancies for increased periods of time, even up to 15 years. With these opportunities for tenancy in these investment properties, it’s clear to understand why these alternative aspects of the market are beginning to boom.
“If you look at the traditional sectors, it’s very expensive to buy with little certainty of long-term income, whereas if you look at a hotel or care home, [occupiers] are typically taking anywhere between 10- and 30-year leases, which is giving people a lot more certainty”
James Shorthouse, head of alternative markets at Colliers International.