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SG Dutch offices converted into student accommodationDutch offices converted into student accommodation

Property Here - Friday, June 07, 2013

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By Nikki De Guzman:

Dutch investors have found a way to address office oversupply and student housing shortage by converting vacant office buildings into student accommodation, according to a Savills report.
 
In the town of Diemen, five former office buildings of Snippe BV will be redeveloped into a student campus that could house 534 student quarters and will be ready in September. Another 402 units are set to be delivered by early-2014. 
 
“The redevelopment of former office buildings into student housing accommodation is helping to alleviate a problem in both markets. With growing demand for student accommodation in the Netherlands against a shortage of supply the sector is becoming increasingly attractive to both domestic and international investors. Banks are more and more willing to finance this sort of property and achievable yields are in the region of 6.0 percent and 7.0 depending on location,” noted Jeroen Jansen, Research Head at Savills in the Netherlands.
 
The research added that by 2025, the number of student registrants will increase by 15.7 percent to 767,000 and will need around 60,000 new student beds. Savills recommends that the Dutch government should revise strict policies such as maximum rent levels to make student accommodation a mainstream asset class.
 
“This way the undersupply can be addressed more quickly and domestic and international students will be able to choose from a variety of suppliers from budget to high-end,” said Jan de Quay, Investment Director at Savills Netherlands.
 
Meanwhile, Marcus Roberts, Head of Student Investment at Savills, said the student accommodation shortage transcends across Europe, creating investor interest from Germany, Ireland, France and the Netherlands.

Image: Elseview office building converted to The Student Hotel - Amsterdam



Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg