Student Housing Asset Class
> At the consolidation stage, at the end of the cycle, is there any asset class offering safe haven for investments?
> Is there something like a recession-proof asset class?
Samuel Vetrak, BONARD’s CEO, has answered these questions backed by data and street-level surveys. To give a more complex picture why students housing is slowly seizing to be perceived as a solely alternative asset class, Samuel highlighted the specifics of the Continental Europe compared to the USA and UK where the student housing asset class represents a well-established and developed class. On the contrary, Continental Europe is suffering from quite a massive undersupply even though the forecasts say that it will become Nr. 1 destination for foreign students in the coming years.
Samuel also noted that it is not only developers and investors who are attracted by this asset class, Universities, cities and even authorities have discovered the benefits students bring. That is why close cooperation, action plans, marketing activities and even EU programmes arose to attract more and more students, hence supporting European economy long-term.
Numbers clearly show that student housing asset class is recession-proof recording high yields, nevertheless in terms of product, Samuel confirmed that what works in the USA and UK does need to be popular with the Continental Europe. Outcomes of street-level survey clearly showcased his words that it is amenities that turn a product into a good product. He went even into deeper and stated that the popularity of individual amenities varies from town to town, hence a thorough local knowledge seems to be key to the right product.
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