Yield Compression

Higher yields have attracted institutions to PBSH, some are paying premiums to acquire scale. These huge deals indicate the sector's growing importance as a global asset class. Yield compression is already happening in prime locations, buying scale mitigates that effect but has in its own way, created a further problem.

Smaller investors are being priced out of the larger deals in these mature markets and, in common with returns-driven investors, are seeking opportunities more in keeping with their scale and strategy - this could include completely new frontiers.

New Opportunities

Frontier and emerging markets in Europe, Asia Pacific and the Middle East provide new opportunities. These developing markets have tremendous potential for both capital and income growth and are ripe for expansion.

In Europe some countries have seen growth in enrolment higher than the US and the UK due to strong national demand and growing international student mobility.

While some investors still seek holdings in established markets, others are looking further afield.  Studivest is pleased to offer a menu of opportunities to suit both tastes.

Emerging Europe

European countries have begun to spot the increasing international opportunities; the significant benefit of English-taught courses is not lost on these countries as they seek to capture more market share.

The Netherlands and Germany are amongst the leaders in this field but Poland and other CEE countries are catching up fast.

A European Degree continues to be a much favoured route to Higher Education on the international front, however the costs of achieving that qualification are now coming into focus and some students are seeking high quality education at lower cost.

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Where is the smart money going?

European Universities are coming into their own, especially as costs are a concern for many - US, UK and Australia are far and away the most expensive regions in which to study globally. This bodes well for Europe and its emerging economies which provide good quality Higher Education in some of the Continent's most highly respected establishments at lower cost.

Emerging Europe comes out of the shadows

New opportunities, for large and smaller professional investors, are a key focus of Studivest and growing demand in Emerging Eastern and Central Europe is on the horizon.

Dynamic new economies are marked by their potential for exploitation. EU Development funds of 370Billion Euros have flowed into Eastern Europe since 2007 and the economies are standing out as offering new opportunities for international investment across most Real Estate sectors.  Studivest is firmly of the view that PBSH is the next sector to come into focus in the region.

Increasing numbers of English taught courses, lower living and tuition costs are a magnet for UK, EU and non-EU students alike drawing growing numbers of foreign students.

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