Together has published a report showing that purpose-built student accommodation (PBSA) is driving a resurgence in the commercial property sector.
According to Together, its average customer commercial loan size in the year to date was £252,707.
In the report, 80% of property professionals, investors and developers told Together that they believed investing in PBSA over the next five years was a "good opportunity".
One in 10 also said that investing money into PBSA would help them boost revenue by between 31% and 40% in the next five years, and 18% said they expected to boost revenue from PBSA investments by 11% to 20%.
“With currently 2.5 students per bed, demand for the vital rental accommodation is set to see further opportunity-seeking investors get involved in the sector,” the research said.
When examining the PBSA market in Manchester, Together found the average monthly rent is £1,310, and has risen significantly in the past decade.
Knight Frank’s quarterly review shows that nearly £575 million was invested into PBSA in the first quarter of 2024, taking the annual investment to £3.87 billion, according to the latest Student Market Update.
Annual investment also grew 14% year-on-year in 2024.
