Factors Affecting Investment in Purpose-Built Student Accommodation in Studentified Neighbourhoods of Tertiary Institutions

Abstract

This paper aimed to increase the awareness of real estate investors and developers by providing a cross-country comparison of the factors affecting investment in purpose-built student accommodation (PBSA). The paper analyses both local and international published literature to extract key findings pertaining to factors affecting investment in PBSA in studentified neighbourhood of tertiary institutions. Using a systematic literature approach in searching electronic databases, past studies were evaluated and analysed thematically based on specific content criterion for the purpose of identifying main factors driving and hindering investment in purpose-built student accommodation. The paper identified demand-related, return-on-investment related, investment-related and institutional-related factors as main drivers of investment in PBSA while e-learning facilities and potential oversupply of PBSA were identified as potential limitations affecting investment made in this real estate sub-market sector. It is therefore necessary that real estate investors should consider these factors while investment in this asset class.