“The cost of accommodation and living expenses in Central London are comparatively higher than the rest of the United Kingdom,” he says. Students are more likely to find well-priced accommodation in Manchester or Liverpool – both of which have a healthy student population feeding their domestic rental markets.
Another city quietly growing in popularity is Berlin, says Radford. “Students have unanimously highlighted the fact that it’s an affordable place to live in comparison to other similarly sized cities. Scholars opting for communal living arrangements or flat shares can maintain a great quality of living in Germany’s capital,” he explains.
Berlin ranks seventh in this year’s QS Best Student Cities list, solidifying its reputation as a major hub for design, fashion, music and art, he says. Although Berlin is not an academic hub on the scale of London or Boston, the survey points out, it is home to at least three highly ranked institutions with Humboldt University at the top.
“You can track a city’s affordability and appeal by the speed at it which it ascends the ranks of surveys of the most liveable cities,” says Radford.
He says a well-developed and attractive education system is a meaningful indicator of a city’s growth potential, long-term stability and future demand for rental stock.
“Across many of IP Global’s investments, we assess a property market’s education sector as a key indicator of its potential for large real estate projects,” he adds.
In cities like Berlin, multi-use developments boasting a mix of residential and commercial spaces offer convenience, security, and access to communal areas. “In my experience, investors looking to buy properties in student cities should be flexible and amenable to tenants wanting to share the burden of rent or live communally,” Radford adds.
The appeal and longevity of universities and the city’s they’re in will ensure a high demand for housing and fresh crop of tenants for years to come.
The German neighbourhoods of Friedrichshain, Kreuzberg, and Neukölln are popular among students for their affordable housing, bars, cafes, and trendy shops.
Adding to their appeal is a reliable and affordable public transport system and a cyclist-friendly environment.
“International students feel at home in Berlin, a city that has evolved into a melting pot of cultures, ideas, and entertainment,” Radford concludes.
