Estate Living November 2016 Digital Issue | Page 48

GRADUATE
with an investment in
student
accommodation

need a place to stay? The DHET is transparent
about not being able to meet the increased
demand for student accommodation. Reasons
cited are the lack of funding, rising maintenance
costs, ageing residences, not enough space for
new buildings and the prioritising of academic
facilities ahead of new residences.
As the accommodation crisis grows, and with
it demand, developers and investors have
identified an opportunity. Private investors
who purchase property close to universities
for their own children while they are studying
find the resale value of the property increasing,
sometimes to almost double the initial price
they paid, which certainly highlights the
potential of student accommodation as a sound
investment opportunity.

In 2009, the Department of Higher Education and
Training (DHET) confirmed that there was a chronic
shortage of student accommodation in and around
universities and campuses in South Africa. Fast
forward to 2016, and the situation remains largely
unchanged, with a constant influx of students from
all around the country. The DHET has added that
often students are forced to live in facilities that
are unsafe, far from campus, overcrowded and not
conducive to studying. It has also confirmed that the
shorttage of accommodation has had a direct impact
on poor performance and high dropout rates at some
universities.
According to statistics, there is currently only enough
student accommodation for 100 000 students, which
meets just 18 percent of the current demand. What
happens to the remaining 430 000 students who also

Property developers too have targeted this
new opportunity and adjusted their sights to
make the most of the rising need for student
accommodation.
Property
management
companies like Rawson, Seeff, Cape Living,
Student & Life, Go Green and MidCity, to name
a few, have changed the landscape to deliver
first-class student accommodation. MidCity
recently launched The Edge Student Living
in Gauteng. Specialising in transforming the
student lifestyle, they offer three-bedroom
suites, which are furnished with desks, chairs,
mattresses, couches, fridges, microwaves,
etc. Add a rooftop entertainment area with a
big-screen TV and braai facilities, then throw
in 24-hour security, an IT lab for group work
sessions and self-service laundry, and students
will never want to leave.
Another current trend in the property space
is revitalisation. Revitalisation is when old
buildings, houses and apartment blocks are
either demolished or renovated into modern
student apartments. Revitalisation has
allowed investors to grow their opportunity by