Student accommodation Leicester has been named as the second-best investment in the whole of the UK for those people looking to make a profit from commercial property.

An Investment Watch report has revealed that student accommodation in the city of Leicester could offer a ten per cent net return a year on an average investment of £49,000. This was only beaten in the poll by Liverpool’s Shankly Hotel, which is said to offer 10.5 per cent per annum based on an investment of £54,000. In third place was a Devon aparthotel which could show a ten per cent net return on an investment of £160,000.

The figures also revealed an upsurge in interest in UK properties from investors across Europe who are keen to spread their commercial wings at a time when other countries are facing a period of economic and political uncertainty. Another major change noted is that interest is moving away from the capital. London was the prime choice for 2014 but, according to the report, demand is now centring on regional towns and cities such as Leicester. In fact, seven investments based outside of the capital made it into the top ten opportunities in the chart released as part of the Investment Watch report.

Commercial real estate dominated the top ten, as opportunities continue to be created by the success of the UK’s hotel sector and booming student numbers. The hotel industry in Britain saw the amount of investment in the sector hit its highest level for eight years in 2014.

Investment in student property, however, is an especially attractive option for a large number of investors, as there continues to be an overall continued lack of supply, despite demand being extremely strong. The student property market is also seen as a consistent form of investment that has proven to be recession-proof, making it a popular option with investors who want strong returns combined with an acceptable level of security.

It is not difficult to understand why Leicester is seen as a hotspot for investors and landlords looking to cash in on the student property market. The city is home to more than 25,000 students over the age of 16, according to official figures from the City Council. It boasts two well-known Universities: the University of Leicester and De Montfort University.

The former was founded in 1921 and received its university status in 1957. It is renowned for being a centre for educational excellence and a hub of pioneering research. Leicester City Council figures show that it has in the region of 16,000 students, with around 7,000 of these being full-time undergraduates. De Montfort University currently operates across two centres – one in Leicester and one in Bedford. It has no fewer than six different faculties and offers more than 400 courses. The university has in excess of 23,000 students spread across its two centres and employs in the region of 3,500 staff members.

As specialists in Student Accommodation, Keywest can help any investor make the most of the rental opportunity in Leicester. Call us today on 0116 254 4555.