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How will the UK property investment portfolio look in 2017

UK property investment 2017, the days of building balanced portfolios around the tripartite of retail, office and industrial assets are over. Residential investment is moving into the mainstream in countries where it has not been in the past, through growth of the private rented sector. Additionally, understanding a multitude of temporary and permanent accommodation options is becoming a necessity for large investors, as both demographics and globalisation support the demand for hotels, student housing, senior living and healthcare.

Demographics favour investment in housing for those at the beginning and end of their adult life. University draws many people to new cities, increasingly in new countries, for the first time in their lives and the trend of increased enrolment into tertiary education doesn’t seem to be abating. A lack of appropriate product in many cities has drawn interest from developers and investors in recent years, creating a new institutional property asset class that is large enough to feature in balanced and specialist portfolios alike. This phenomenon is particularly obvious in Europe, where housing stock is older and typically built for single family use rather than modern apartment blocks which are a better fit for student purpose, but is also seen on the other side of the globe in Australia and many cities in between.

At the other end of the demographic spectrum, senior living and care home assets are experiencing similar supply and demand dynamics, as large ageing populations in the largest economies in Europe, North America and Asia-Pacific have the financial means to demand better accommodation and care as they grow older. UN world population projections predict a 12% increase in the number of people over 75 between 2015 and 2020, and another 18% growth by 2025.

UK | European | Global Real estate needs to meet the demands of the growing number of people traveling for business and pleasure with a range of hotel product to suit all budgets (from new hostels in Europe to six star resorts) and duration (from basic single night business hotels to longer stay apart-hotels). IATA forecasts suggest global passenger numbers will increase by around 5% p.a. for the next five years, and the hotel sector in gateway cities should continue to benefit from this increase in travellers.

We specialise in Luxury residential apartments at affordable prices in the UK and Lisbon (Portugal) both of these countries are in the top 5 of places to invest in real estate. The AIRBNB model as made it possible to benefit from yield of 5-10% renting on a short term basis to business people, tourists and part time residents.

 

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