Why invest in a new Studio Apartment in Bracknell?

Avg Studio Yield: 5.5%
Avg Studio Price: £170,200

Popular throughout the world, a studio apartment is a stylish and compact living space. Growing in popularity with both developers and renters, they provide affordability and flexibility in prime town or city centre locations. As regions grow, studio apartments can provide a compact solution to residential undersupply.

Studio apartments in Bracknell allow investors the opportunity to invest in the destination at a lower cost and still deliver excellent rental yields because of the positioning and surrounding amenities.

Growing Tenant Demand

The Private Rented Sector is continuing to grow in 2019, forecast to make up 25% of the total housing market in the near future. The rise of ‘Generation Rent’ means more tenants are choosing to rent ‘permanently’, enjoying the flexibility provided by a rental property.

Studio apartments can meet the demand for two growing tenant demographics – young professionals that are looking for residences near city-centre job opportunities and tenants that are looking to downsize. For both demographics, an open-plan, single story layout at the heart of a city offers ease, comfort and accessibility, putting the tenant within walking distance of everything they need while remaining affordable.

Rental Yields

Studio apartments are particularly attractive in Bracknell because of high capital appreciation and rental yields. Andrew Donnelly, CEO at Whiterock Capital Partners, believes studio apartments can provide rental yields between 1% and 2% higher than one bedroom and two-bedroom apartments.

“Studios offer yields closer to 6%, whereas one-bedroom and two-bedroom apartments will generally provide a yield of around 5%.”

Investors looking at studio apartments should utilise them in long-term strategies, rather than short-term capital gains. If investors want a strong rental return over time, a low-maintenance and affordable studio can increase the potential for positive returns. Depending on the price they can also be exempt from stamp duty.

 

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