Steep learning curves for student accommodation investors
Alternative real estate assets such as hotels, data centres, healthcare facilities, nursing homes and student housing continue to be put forward as a means of investors obtaining higher returns in this low-yield environment. Real Capital Analytics’ European Capital Trends report for Q3 2016 found that the share of European investment volume accounted for by these specialist sectors in the quarter was a combined 18 percent, an all-time high.
According to Tom Leahy, RCA’s director of EMEA analytics, “the rise of alternatives, which offer investors higher yields on longer leases with some exposure to operational risk, illustrates how investors are looking outside the traditional sectors for opportunities in the prevailing low interest rate environment.
“Across Europe,” Leahy commented, “the investment cycle has reached a stage of maturity after the record year in 2015, which is causing investors to shift their focus toward second-tier locations or ‘