The value for student housing, build to rent and retirement housing is set to quadruple in the UK, reaching a combined worth of £880 billion at full maturity, almost 4 times the current £223 billion valuation.
"Common to all these sectors is the recognition that investing in where people live has great potential for investors, particularly those seeking long term income streams."
Lawrence Bowles, Research Analyst at Savills
The purpose-built student accommodation (PBSA) sector is the most mature and liquid of the operational real estate markets, worth £51.2 billion today, Savills estimates, however, Brexit concerns are weighing on activity.
Build to Rent (BTR) is a much newer sector, with enormous growth potential and many opportunities for new entrants. Currently valued at £9.6 billion, Savills projects it will be worth almost £550 billion at maturity, providing homes for over 1.7 million households.
Retirement living is also expected to expand rapidly, both as a tenure and asset class. Institutions and REITs are already active in the care home market, but the scale of activity is growing rapidly. A market for retirement housing investment is now emerging, worth £120 billion today.