Student housing as an asset class has been affected by Covid-19, but it has performed better than other classes such as hotels, offices and retail, as Bonard CEO Samuel Vetrak explained to Real Asset Media’s Richard Betts.
While there has been 5% to 15% less occupancy, there are many stayovers, renewals and a high level of takeup from domestic students, he said. Many consider that their study destination is “home” and will move there even though they are currently receiving their education online.
The implication for real estate is that there have not been the expected divestments. In fact, two thirds of investors want to buy more in the sector and new investors are also joining the throng. Other opportunistic investors are looking to distressed sectors, such as hospitality, for conversion opportunities.
Click on the video to watch the full interview or listen via the podcast below.