Rise Of Student Housing As A Global Real Estate Asset Class..!


According to Jones Lang LaSalle’s new Global Student Housing Report, The increasing number of students from Asia choosing to study outside of their home country has played a key role in developing the student housing sector into a global real estate asset class.

In recent years, Asia has increased its market share as a source market for international students from 48% in 2004 to 52% in 2009.

In fact, the top 5 source markets globally are China, India and South Korea, followed by Germany and France in fourth and fifth.

On the flip side, the most popular destinations for these students are the US, the UK, Australia, Germany and France.

Mr. Philip Hillman, Lead Director, Student Housing & Higher Education, Jones Lang LaSalle said, “Strong economic growth in the key Asian markets has fuelled higher education enrolments globally. Over the past decade, countries like China, India & Vietnam have experienced rapid growth in the wealthier middle class, which has spurred demand for higher education & better housing options in destination countries” 

Globally, the student housing market as a whole is estimated to be worth in excess of US $ 20,000 crore, with study abroad student numbers expected to increase from about 165 m today to 263 m by 2025.

Market transaction volumes worldwide for the year ending June 2012 were US $ 470 crore, with more assets trading above US$ 50m, showing healthy investor appetite for this asset class.

While ownership of student housing has traditionally been dominated by developer-operators, increasingly, equity funds, sovereign wealth funds, pension funds, investment managers and REITs are entering the market.

The sector’s solid investment fundamentals have been characterised by its counter cyclical nature, high occupancy rates, strong demand drivers & positive income & rental growth.

Foreseeable Future..!

Mr. Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India said, "Student housing is one of the most vibrant Indian real estate markets in the foreseeable future. Dense student populations that exist around prominent colleges positively affect the demand for residential spaces as well as restaurants and small retail spaces. As such, educational institution lend value to a location."

In fact, the future of this sector in India is extremely promising.

Mr. Anuj Puri also said , "The country's top 10 to 15 corporate schools have plans to develop a total of about 800 to 1000 schools over the next decade, aiming to deliver quality education to far-flung parts of the country. The corporate higher education industry is expected to build close to 10 million square feet of educational institution space over the next few years and this not include the rapid expansion plans that are underway to build new IITs, IIMs, SPAs and other reputed educational institutions. The demand for the right kind of student housing that such a scenario presents can well be imagined."

For a copy of Jones Lang LaSalle’s new Global Student Housing Report, please click here.

For more details..!
Arun Chitnis
Assistant Vice President, Marketing
Jones Lang Lasalle India
Level 6, Amar Avinash Corporate Plaza
Bund Garden Road, Pune -  411001.
Tel: (020) 3093 0441 Fax: (020) 4019 6101
Mob: +91 93227 38464 Email: Arun.Chitnis@ap.jll.com
Website: www.joneslanglasalle.co.in
Blog: www.joneslanglasalleblog.com/realestatecompass
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

9 REASONS WHY THE MARKET IS FALLING..!

9 REASONS WHY THE MARKET IS FALLING..!   1 WEAK CORPORATE EARNINGS - QUARTER 2   2 CPI HOTTER THAN EXPECTED   3 S...