London Real Estate Sizzles Off Campus
Article by Jenny Anderson
The U.S. view on the Hottest Property Market in the U.K. Student Accomodation.
Joyce Ge, a student from China who is studying business management at King’s College, pays 880 pounds a month, or $1,310, to live in a pint-size, stylish studio apartment in the far reaches of east London, in a building with roof decks gazing toward the distant city skyline. Her rent covers water and electricity, as well as Wi-Fi and cleaning of common spaces every two weeks.
Many investors are betting that there will be a lot more Joyce Ges arriving in the coming years.
International college students are pouring into London, deepening an extensive housing shortage. The result is that student housing is becoming another red-hot corner of the city’s property market. That has tempted international pension funds, major private equity players and real estate giants to build up or sell off large portfolios of buildings for handsome profits. The values of many of these portfolios are rising (and consequently, yields are falling) as a result of the intense investor interest.
Source: New York Times - To read the full article Click Here
Photo Credit: Derwent Students - Roof Top Garden at The Hive