Glasgow is the largest city in Scotland and it comes with a strong rental market while also being a great place to invest in one of the strongest asset classes – student property.
Property prices are increasing and rental rates are also heading in the same direction and this makes Glasgow the perfect location for property investors to invest. The yields are strong while many may look to take advantage of a performing market that is located outside of London. In fact, the free tuition fees, large amounts of disposable income and a large demand for Glasgow’s student property market
, which is performing better than anywhere else in the UK. So, why wouldn't you invest?
Huge Student Population
The student population in Glasgow is massive with 80,000 students making up part of the 600,000 strong populations means that one in seven people living in Glasgow is a student. International students also view the city as a great place to study and this has been proven by the fact that the number of overseas students has doubled over the last five years.
Glasgow is heavily linked with higher education and it has a high number of universities when compared to the rest of the UK, not including London. The University of Glasgow is a member of the elite Russell Group universities and it also has another five acclaimed institutions.
Devolved education powers benefits students in ways that other students around the UK are not. There are no tuition fees to pay for Scottish and European students who are studying in Scottish cities such as Glasgow and this means that the students have more disposable income than others. To add to this, undergraduate courses in Scotland last for at least four years which means that students will be living in the city for a longer period of time.
Student accommodation in Glasgow has moved into the top tier of cities as the future potential is clearly evident while purpose built student accommodation (PBSA) making it possible for just over 4,000 beds to become available.
There is not enough accommodation – Only around 10% of the student population is guaranteed PBSA. Therefore, 75% are expected to live in property that has multiple occupants and these properties are commonly low in quality and inadequate.
The PBSA that is available is often old and not suitable for the modern tastes and desires of today’s population. However, students like this kind of living and have to a premium of 30% for renting these properties.
Anyone can clearly see that the opportunity for student property investment
is there, especially with PBSA that consists of high quality in Glasgow.
The future is promising for investors
The number of international students studying in the UK has grown by 100% over the last ten years as British Education continues to appeal and shows no signs of slowing down. David Cameron made it clear during his time in power that there will be no capping of overseas student numbers and this means that the investment potential is going to grow.