Taking a leap to decide to start investing in real estate is a major decision. While like all investment avenues, real estate does have its fair share of risk; it also provides a great way to gain good returns. Student housing projects, particularly the ones developed by leading companies like Nelson Partners, would be an excellent asset class to put funds in. This sector has proven to be resilient to economic fluctuations and provides stable investment opportunities.
Most people invest in student accommodation to get higher-than-average rental yield for the property in comparison to what they would get after investing in a typical residential property. Here are some of the key factors that make investing in student housing projects a smart move:
- High enrollment:The demand for graduate and undergraduate degrees is consistentlyrising across the globe, even with the raging tuition fees in most well-known colleges and universities. Student enrollment is rising pretty steadily as the need for education is still huge. The key factors to perceive and consider when it comes to making real estate investments include demographics and job growth. But in case of student housing, high enrollments is the prime indicator. College applications and their continuing processes indicate that a particular region, especially of it is near a university, would be populated with students.
- Recession-proof: The term ‘recession-proof’ is often heard while taking about investments. Some of them can be valid, while others are not. Nevertheless, student housing properties are actually one the options that is genuinely resilient to the economic downturn. Whenever a local crisis takes place, it has an opposite effect on student housing. In contrast to what other types of properties may experience during a crisis, an increasing number of students end up applying for student housing in such situations. The reason behind this is that most people have a believe that having an undergraduate degree will give them more possibilities of landing a good job when the labor market has become too competitive or has collapsed. During these situations, people try their best to afford college. Individuals who have finished their bachelor’s degree often think that getting a master’s degree on top of that will improve their employment chances. On the whole, demand for student doesn’t go down during even a recession, as people do not stop going to college even when the economy is suffering.
A great example of how well student housing properties perform during a crisis was witnessed during the Covid-19 pandemic. Colleges and universities across the world had to shut down their gates and provide online learning alternative during this time. Even though some student housing properties were affected, many students opted to stay at their housing facilities itself rather than going back home. The properties offered by companies like Nelson Partners are especially offer feature-packed properties where the students can lead a comfortable lifestyle. Hence, their demand always stays steady.