Newsletter Q1 UK 2018

Newsletter Q1 2018

STUDENT HOUSING REMAINS an attractive investment

By Jacob Bruun-Borring, Senior Consultant, Sadolin & Albæk Research & Valuation

In recent years, the investment market for Copenhagen student housing has attract- ed mounting demand, in 2017 ranking as one of the most popular segments. Investor demand is driven by a structural supply and demand imbalance in the letting market as well as yield compression on traditional residential investment properties.

Student count rising As of 1 October 2017, the student count in the Capital Region of Denmark was 108,000, a sharp increase relative to the 86,000 recorded in 2006. Corresponding to an average annual increase of 2.10%, the development should be viewed in the context of population growth rates of 1.25% in Greater Copenhagen and 0.5% nationwide in the same period.

The higher student count is driven by relatively large increases in the youth population in 1989- 2000 as well as an increase in the international student count. In the period from 2010 to 2016, the international student count in Greater Copenhagen increased by some 17,300, thus accounting for 22% of the total student count in 2016. The large student count in this period may also be explained in part

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