Student flats in Dundee – the best investment
Property investment company, Grant Property, predicts that investment in buy-to-let properties for students is set to skyrocket in Dundee.
Dundee has around 20,000 students, according to the Higher Education Statistics Agency. Managing Director of Grant Property, John Moran, says: “The student rental market is thriving with very high occupancy levels, and is growing year on year. Because the student market is less affected by economic events than other sectors this provides an amount of stability for the investor. Not only that but property prices in Dundee are now the fastest growing in Scotland, despite being one of the most affordable cities in the UK, making Dundee property a desirable investment commodity.”
But according to Grant Property, which lets to thousands of students a year, it is not only parents who are recognising the virtues of the buy-to-let market as a means to save on shelling out for their offspring’s rent and other expenses. Investors are attracted by the high rental yields and price growth. Moran says: “Purchasing a property for your student son or daughter generates income for the student from letting out a spare room or two and also saves the parent from funding them out of their own after-tax income. Investors around the world are scooping up residential properties in their bid to capitalise on what they see as a flourishing market. We have many investors, from 40 different countries around the world, that are aiming to build up large portfolios. Dundee and other regional cities in the UK are being seen as a safe bet for their money as they have historically have performed well.”
John Moran says: “Uncertainty can affect demand but a weakening currency can also make UK property more attractive to overseas buyers, and we are seeing a surge of interest from foreign investors keen to get their hands on UK properties in regional student cities outside London.”
Student accommodation nowadays is a far cry from the student digs of old, and regulations around the private rental sector have increased significantly to guard against ‘slum landlords’. This has greatly improved safety and standards for tenants, which, according to Moran “has led to greater professionalism in the property management industry. That kind of reputation is also what attracts overseas and UK investors who feel that their money is secure in the hands of professionals.”
In the 21 years that Grant Property has been sourcing, renovating, furnishing and managing traditional residential properties across 10 cities in the UK,
Further information: John Moran, Grant Property, 0131 220 6360 or Rosemary Walker, Playfair Walker, 0131 445 5570