Student-aimed Real Estate Investments a growing market

With the fast pace of university enrolments, as well as the growth in international students studying in Ontario, student-targeted condos have become hot properties, particularly for real estate investors. As an investment class, real estate is always in the frame. Over the last decade, a new star performer has emerged worldwide; student-aimed residences. Projects are continuing across the US, UK, Europe, Canada and more. Developments range in size from large building complexes to boutique-size. They are located close to campuses, ideally walking distance or with fast transit access. The buildings are purpose-built with amenities designed to enrich student life, such as study niches, WiFi, meeting rooms, exercise facilities and more. The suites are of high quality and many buildings offer concierge and housekeeping services with 24/7 security. Investors are attracted by the security of owning real estate with a steady base of demand; enrollments continue to grow with no end in sight. Importantly, this sector allows individuals to achieve the kind of stability and returns usually atttainable only by big institutions. As proof, the Canada Pension Plan Investment Board this year invested over $2.4 billion in student focused residences and has established a proprietary rental gateway organization, reportedly planning to focus on growing this market in the UK over the foreseeable future. Canadian universities benefit from the growing globally mobile student market, helped by the federal government’s Student Partners Program operating in China and India. Canada is a highly desirable destination for the huge numbers of international students from China and South Asia seeking to obtain foreign degrees. Their parents with resources to invest insist on quality accommodation as well as on-site safety for their son or daughter studying away from home and family. The student housing trend is not projected to abate anytime soon. All the key factors are in place for success; built-in, renewing, medium-term, necessary, and recession-proof rental demand backed by high quality educated tenants who often have family or government financial support. Offering fully managed, hands-off real estate holdings, this sector is perfect for out-of-town investors.