France: investors studying student btl

New research from Savills reveals that investors are looking into French student housing…
 
Overseas Property Professional recently reported that under-supply, rising student numbers and the prospect of guaranteed rents are attracting more and more investors to this particular investment market.

Savills found that rents range from €122 per month for a room in standard public sector housing to €800 per month for a room in a principal university Centre. Savills also claimed that yields between 5.5% and 7% were achievable in the sector. Current capacity is low and estimated to house only 10% of the student population.

Pascal Rupert, director of Savills, commented: “Traditionally, much of the student accommodation stock in France was provided by the public sector, but recently the number of private developments has increased.

“The inadequacies in the existing stock have led to public authorities introducing tax incentives to encourage private construction. Currently there are three private student residences being built for each public sector residence. In 2007 the student housing stock was made up of 530 public and 650 private residences.”