The best university areas for real estate investment

With four of the top ten universities in the world, the UK is home to a wealth of exciting places to study for students. As the demand for student accommodation increases, both from international students coming to study and those moving away from home to live in another part of the country, the opportunity is ripe for investors to meet the demand with quality luxury accommodation to satisfy.

Student real estate is also a great alternative to residential investment. Not only is it typically more affordable, making it an excellent option for first-time investors, but rental yields are rising, and demand means there’s an increased likelihood of attracting a tenant. Student rent, on the other hand, tends to be a more reliable source of income, as it’s typically paid consistently with loan deposits or paid directly by a parent or guardian.

The draw for London universities to host all four of the best British schools in the world is undeniable, but Brexit uncertainty and a sluggish market have made it one of the worst places to invest in the UK looking to the future. For those wondering what are the most profitable student property investment opportunities outside of the capital, here are two of them the most popular university areas for real estate investment.

Liverpool

Liverpool, home of the Beatles and European Champions League final winners, already has great tourist appeal, but the university’s appeal is something potential investors shouldn’t overlook. With three-quarters of residents aged between 17 and 29 living in the city center and several universities and colleges within walking distance of shopping malls, bars, restaurants and attractions, it’s clear that education and employment is the route following this education is a major factor in why Liverpool’s population has grown by 181% since 2002 and is continuing to grow.

In addition, half of the 70,000 students who visit the city to study need housing. Real estate investment companies like RW Invest offer investors off-plan real estate development projects, giving them the opportunity to meet this demand with luxury city center apartments that provide them with all the amenities they need to make the most of their academic journey.

The University of Liverpool, the city’s leading Russell Group rated university, has significant international links with over 10,000 students in 2017/18 and a partner university in China. These connections make the city a great destination for foreign students and the investment opportunity will obviously arise as the demand for housing is created by this growing number. The city not only attracts the attention of international students, but also investors. Chinese investor interest in Liverpool, for example, has surged 160% since January 2018.

Manchester

City center living is becoming increasingly desirable again in the UK as more student property projects are under development as demand increases. Cities offer students and young professionals the experience, culture and education they desire, and cities in turn benefit from economic prosperity and investment opportunities.

Considered by many to be the capital of the North, Manchester offers a vibrant melting pot of creativity and ideas with numerous and growing job opportunities as it emerges as a burgeoning tech start-up area. Again, the city’s population has grown immensely in recent years and will continue to do so as it rivals London with more affordable options.

Manchester also has fertile potential for capital growth and is among the best areas in the country if you want to quickly enhance the value of your prospective property. 12-month capital appreciation growth in 2018 was 7.4%, the highest in the UK.