The recession proved that student housing was one of the best performing property sectors during the global economic downturn, expanding from $3.4bn investment globally in 2007 to a new high of over $20bn currently.
The ongoing performance of the student-housing sector has confirmed the value of this investment sector.
Africa, specifically, with its youthful population and burgeoning cities, is set to provide enormous return for investment in student lodging. And the value of an investment at the start of the development is at its greatest potential for solid returns in the future.
In addition the investment will provide a substantial tax break - SARS Income tax act Section 13 sex – to any investor buying 5 or more units in this development. These investors may deduct the full purchase price over 20 years against their taxable income. Section 12J of the income tax act also now applies to student-accommodation, with massive tax breaks available in the year of investment.
Although the demand for student accommodation lies behind the student accommodation success story, the demand is sustained by the willingness to pay for quality accommodation.
Parents want what is best for their children and are willing to pay for it. And companies want what is best for their bursary students and will pay to give them secure, comfortable accommodation close to the campus.