2022 Student Accommodation

41

CUSHMAN & WAKEFIELD

INVESTMENT YIELDS UK PBSA has experienced steady yield compression over the last nine months. Although the UK economy has made great strides in navigating its way out of the peak pandemic-era uncertainties of 2020 we are still seeing a flight to quality which is maintaining the yield gap between London, prime regional and more secondary locations.

In the development market, a strong appetite for sites is being hampered by build and utility cost inflation creating viability challenges in markets where rental levels do not support development. Developers remain prepared to pay handsomely for the best sites, but we may be seeing downward pressure on values for more tertiary sites.

Q1 2019

Q1 2020

Q1 2021

Q1 2022

MOVEMENT

4.00% 3.75-4.00% 3.75-4.00% 3.50-3.75%

PRIME LONDON

INWARD

SUPER PRIME REGIONAL

4.75-5.00% 4.75-5.00% 4.75-5.00% 4.50-4.75%

INWARD

5.25-5.75% 5.25-5.75% 5.25-5.50% 5.00-5.25%

PRIME REGIONAL

INWARD

SECOND REGIONAL 6.00-6.75% 5.75-6.00% 6.50-7.50% 6.25-7.00%

INWARD

7.00% + 7.00% + 8.00% + 7.50% +

TERTIARY

INWARD

Source: Cushman & Wakefield Student Accommodation Tracker