Mention student accommodation to any serious property investor and their ears will pick up. Over the past 5 years or so demand for this property class has been exceptionally high due to the fact that student accommodation located within close proximity to major Universities offers investors a solid investment with a reliable return.

Student accommodation may be leased out to a University typically over 10 months of the year or directly with the students themselves. Each approach has its pro’s and cons however in both instances it is necessary to be a certified supplier of student accommodation with minimum standards being met.

Due to a shortage of quality student accommodation in many regions across South Africa, demand for space often outstrips supply resulting in very low vacancies in suitable buildings.

One of the major benefits of operating a student accommodation facility is that the potential rental one can achieve per room is often much higher than for the equivalent room in a normal residential building. Rental is charged per student and an average student accommodation room can fit up to 4 students in a room.

It is no wonder why listed property funds and private investors alike are clamoring to acquire quality student accommodation in major city centers.