New CBRE Student Accommodation Index shows strong increase in capital values

UK Student Accommodation continues to gather momentum amongst investors, with capital values increasing 6.5% year on year (to September 2018) according to CBRE’s newly launched Student Accommodation Index.

• Student Accommodation in Central London outperformed Regional by some margin, with annual total returns of 17.5%

• Outside of Central London, Student Accommodation annual total returns were 10.5%

• With capital values increasing 7.2%, large Student Accommodation properties (500+ beds) slightly outperformed small (less than 250 beds) and medium (250-500 beds) properties.

• In towns (excluding London) where the number of university applications increased from 2016/17 to 2017/18, total returns for Student Accommodation reached 11.3% in the year to September 2018.