Serviced Accommodation Property Investment
Welcome to our comprehensive guide on property investment hotspots in Newcastle, brought to you by the experts at Clarice Carr & Co. With over a decade of experience researching and writing about the UK's property market, we’re here to help you uncover the most promising areas for serviced accommodation investments in this vibrant city.
Why Invest in Serviced Accommodation in Newcastle?
Newcastle upon Tyne, often referred to simply as Newcastle, is the largest city in the North East of England. Known for its iconic landmarks like the Tyne Bridge and the thriving cultural scene, Newcastle also offers significant potential for property investors focusing on serviced accommodation.
Economic and Infrastructure Development
Newcastle's economy, historically rooted in coal mining and shipbuilding, has transitioned to focus on services. Major sectors include public services, financial and professional services, construction, transport, and the automotive industry. Emerging creative, digital, science, and tech sectors are also bolstering the local economy.
Significant regeneration projects such as Newcastle Helix, the Stephenson Quarter, and the East Pilgrim Street redevelopment are expected to further enhance the city's economic landscape and property market. These developments, along with the planned Newcastle Gateshead Quays, position Newcastle as a dynamic city for property investment.
The Growing Demand for Serviced Accommodation
Advantages of Serviced Accommodation
Serviced accommodation offers several benefits over traditional rentals. These properties provide a home-away-from-home experience that is often more spacious than hotel rooms, offering up to 30% more space on average. They are also typically 20% less expensive than equivalent hotel stays, providing excellent value for guests, particularly for longer stays where VAT reduces to just 4% after 28 nights​ (TD Property Investment)​.
The flexibility of serviced accommodation is another key advantage. Guests appreciate the ability to cook their own meals, work, and relax in a private space. This flexibility, combined with prime locations often near business districts and tourist hotspots, makes serviced accommodation a preferred choice for many travellers​.
Property Investment in Hotspots in Newcastle
Newcastle City Centre
Population: ~10,500
Average House Price: £162,300
The city centre offers a diverse range of properties, from period homes to new-build apartments. It is a prime location for serviced accommodation due to its proximity to major attractions, business districts, and excellent transport links. Properties with views of the River Tyne or the iconic Tyne Bridge are particularly desirable, attracting both business and leisure travellers.
Jesmond
Population: ~22,000
Average House Price: £360,000
Jesmond is a vibrant residential area popular with young professionals, families, and students. It boasts a lively social scene with trendy bars, restaurants, and independent shops. The area’s appeal to a diverse demographic makes it an excellent location for serviced accommodation, especially for business travelers and visiting academics.
Gosforth
Population: ~21,500
Average House Price: £298,500
Gosforth is renowned for its excellent local facilities, top-rated schools, and easy access to the city centre and Newcastle International Airport. This area's high quality of life and family-friendly environment make it a popular choice for longer-term serviced accommodation stays, appealing to relocating professionals and families.
Benton and Longbenton
Population: ~20,900
Average House Price: £180,000-£210,000
These mid-priced areas are popular with families and offer good value for serviced accommodation. Being on the Metro network provides easy access to the city centre and other key areas, making them attractive for both short-term and long-term stays.
East Newcastle (Byker and Walker)
Population: ~32,000
Average House Price: £159,300
East Newcastle offers budget-friendly properties and is popular with investors seeking affordable serviced accommodation options. Its proximity to the city centre and local amenities makes it a convenient choice for guests looking for economical yet comfortable stays.
West Newcastle (Benwell, Elswick, Fenham, Scotswood)
Population: ~36,700
Average House Price: £164,100
The west side of Newcastle offers some of the city's most affordable properties, making it an attractive option for investors. Despite being more economical, it provides easy access to the city centre and major transport links, appealing to budget-conscious travelers.
Coastal Suburbs (North Shields, Tynemouth, Whitley Bay)
Population: ~31,700
Average House Prices:
Tynemouth: £308,000
Whitley Bay: £291,500
North Shields: £201,000
These coastal areas are popular with families, retirees, and city commuters. The scenic waterfront and beachside locations attract tourists and leisure travellers, making them ideal for serviced accommodation investments. Properties here benefit from both the allure of the coast and the convenience of city access.
Gateshead
Population: ~205,000
Average House Price: £152,700
Gateshead, just across the River Tyne from Newcastle, offers excellent investment opportunities with lower average property prices. Its proximity to Newcastle and well-connected transport links make it a favourable location for serviced accommodation, catering to both business travellers and tourists.
The Practicalities of Investing in Serviced Accommodation
Investing in serviced accommodation involves several practical considerations:
Initial Costs
Finding the Right Property: Costs vary depending on location and may be higher than regular residential properties.
Upfront Costs: Includes purchasing, renovating, and furnishing the property to appeal to target demographics.
Licensing Fees: Complying with local regulations and obtaining necessary permits.
Marketing and Advertising: Promoting the property through online platforms.
Professional Services: Property inspections, legal advice, and property management services.
Services and Amenities
Amenities: Offering services such as concierge, laundry, and premium offerings.
Housekeeping: Arranging cleaning services during and between guest stays.
Effective Serviced Accommodation Property Investment
Newcastle presents a range of investment opportunities with diverse property types and attractive yields. Whether you are looking for student accommodations in Jesmond, budget-friendly options in East Newcastle, or high-yield properties in Gateshead, Newcastle’s property market has something for every investor.
Ready to explore https://www.claricecarr.com/services/serviced-accommodationhttps://www.claricecarr.com/services/serviced-accommodation? Connect with Clarice Carr & Co for exclusive, high-yielding, off-market property deals and personalised guidance through your investment journey.
Want to know more? Check out Serviced Accommodation on our website or get in touch.
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