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
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