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Unlocking the Potential: Why the Booming Private Student Accommodation Sector is a Smart Investment Choice.
With the new year well underway, South Africa's tertiary institutions know there isn't enough student accommodation for the wave of new students embarking on their university careers.
South Africa has a shortage of around 500 000 student accommodation beds.
A World Bank Group's International Finance Corporation (IFC) feasibility report shows that by 2025 local student accommodation shortfalls will climb to 780 000 beds.
Stellenbosch University, recognised locally and internationally as a leading tertiary institution with a 30 000-strong student population, is massively oversubscribed with over 65 000 first-year applications this year and only 5 615 placements. Its campus, comprised of 31 university residences and other university accommodation options, only supplies in the region of 6 500 student beds.
This makes The One, the latest high-end private residence in Stellenbosch, highly sought-after.
Merging accommodation, hotel convenience, state-of-the-art studying and lifestyle spaces into this design-centred five-storey, fully managed development – The One is nothing short of jaw-dropping.
Consisting of 508 luxury units with meticulously designed layouts ranging in size from 23m2 to 150m2 and starting from R1.45 million - The One will set a new benchmark for tertiary education private accommodation.
- Click here to learn more about The One
Strong capital growth potential in Stellenbosch
The goal with any investment property should ultimately be capital growth. Nothing ensures this better than a prime location geared for continual development and expansion.
The Stellenbosch market brings considerable capital growth appeal with ongoing student population cycles spurring growth and development, adding a recession-proof safeguard for this prime location through rental yield.
With a conservative average estimated 6% capital appreciation, buy-to-let investments are considered low-risk investments. However, south African Property industry data shows that sectional title sale price averages in Stellenbosch have seen a 20% increase in 2021.
Demand. Demand. Demand.
Student accommodation is quickly rising in the ranks as a robust asset class in certain nodes which include the high-demand, Stellenbosch.
A surge in university applications this year in the student town coupled with the need for high-end private accommodation, has resulted in an increase of as much as 20% rental achieved from projected estimates in similar accommodation in the area.
This sets up The One to achieve much higher than anticipated rentals, therefore seeing buy-to-let investors yields increase way above the current projections.
- View the Academic facilities at The One
Paramount to The One's vision, is to ultimately enhance this quaint suburb by making it more pedestrian-friendly and in doing so, create a café culture atmosphere along it’s beautiful tree-lined streets.
In a Stellenbosch first, over R35 million has been raised and earmarked by a group of developers in the area to build towards this vision and amplify the suburb, as well as improve its accessibility to campus. The funds will be allocated to 11 projects that range from major security enhancements, to local area infrastructure upgrades for all who reside in the area.
This desirable location, well on its way becoming the next Stellies student hub, has likeminded developers already taking advantage of The One’s entrance into the area by purchasing existing houses in the precinct for further student development.
- Click here to find out more about this exciting opportunity.
Snapshot of The One's unique convenience-centric and lifestyle-orientated amenities
The developers of The One have put in five years of careful planning, research, and industry-leader collaboration with critical stakeholders, to create the ultimate student address in Stellenbosch.
The One enhances student life with modern-day convenience. Its optimal academic amenities include tailor-made solo study pods to multi-purpose boardrooms for group work.
Lifestyle centric amenities include a courtyard swimming pool, outdoor social courtyards, cinema, eGaming room, restaurant, fitness centre, and interior-designed pause and relaxation areas.
Since its launch on 26 October 2022, The One has achieved over 245 sales, more than the entire Stellenbosch Central sales made in 2021. Starting from R1.45 million up to R4.65 million, units at The One are highly compelling.
- Learn more about amenities at The One here
Email: info@the-one.co.za
Call: 076 281 7393
Visit: www.the-one.co.za
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