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The Increase in the Student Property Market

The Increase in the Student Property Market

As private housing developers do their best to trump their competitors, a lot of them are now turning their attention towards the increase in the student property market. Compared to the swelling of the student population, Universities are currently in rude health. Every college and university towns are projecting the demands of students for property this year will go up dramatically. They expect this to continue until next year and the year after that and where young minds hungry for knowledge flock, housing prices are sure to follow.

Real estate developers and investors are of course keen to notice whichever property market is more likely to return their investment the fastest. This is why a lot of them are pumping huge capitals into areas near prominent universities. Although the numbers of fresh enrollees are actually still far from what they were in 2007, mostly because of the tuition hike or the downfall of the global economy, all signs point towards student applications booming. One important study of incoming applicants is that half of them are going to sleep at home and the other half would like to dig into the student property market. That’s equal to tens of thousands of students carrying the wallets of their affluent parents. Remember that every year, more and more overseas students are pursuing their studies in more prominent universities because of their well-known history in quality education. This is why real estate developers are banking great capital into this market because they know that parents are always willing to shoulder the expenses of their offspring no matter how hefty it might be at this critical point in their life. Don’t look now but student housing has already yielded exorbitant rental fees, which leads to capital appreciation.

Like in any market, the balance between supply and demand shouldn’t outstrip the other. In this particular market we’re discussing, it’s the supply that is trying to catch up. We should not forget that what these real estate developers offer are products. Although, it isn’t exactly the private sector that they are addressing, many of us will be surprised with the kind of product they are focusing on these days. Looking at the high-rise developments sprouting near campuses these days, the student property market appears to have another prize that is leaving developers into frenzy. It’s the demographics capable of demanding a posh student accommodation. It may sound surprising for many, but yes, it proves that there is a vast demographic of students that can afford and actually seek out the kind of housing that could rival hotel amenities. This has prompted the clamouring of capitalists to not only build for the general student property market its typical bed and lodging, but also create an environment meant to cater the upscale off-campus student housing.

Even when we were under a recession the student property development has remained robust, unlike the crisis that took place with the private housing market. This gives developers and capitalists further incentive to stay on its heels in addressing the growth of demand in the student property market well into the future.

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