Karolina Kournossova’s Post

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PBSA | Coliving | BTR | Multifamily

If you have not seen today’s Savills publication on Investment in UK Operational BTR yet. The key attractions of the BTR sector for investors: - £300bn is the investment needed to meet future household growth across the PRS. A large part of this investment will need to be in urban BTR apartments. - Rent levels have outperformed the wider PRS, reflective of the higher quality of stock and professional management approach. - Rental growth of 3.2% p.a. over the past 20 years compared to earnings growth of 3.1%. This close correlation is especially attractive to institutional investors and points to sustainable rental growth over the long term. - Forecasts show rents outperforming house prices over the next two years supporting investment values. - 50% of investment in BTR in 2023 was from new entrants to the market, up from 20% in 2018. The investor profile is changing as the market matures and attracts a wider pool of global capital. - Housing should be viewed as infrastructure investment as the cost of debt remains a barrier to core capital but could be overcome if housing was considered an infrastructure product. Rented housing (affordable / private) is especially useful to infrastructure funds that deliver many homes in other countries. - 110,000 homes in the BTR planning pipeline which is the largest pipeline we’ve seen and indicates that the sector will start to grow more quickly than in the past. If it grows like the student sector did previously, it will start to double in size every couple of years. - Greater BTR scale will arguably be easier over the next decade because the groundwork has been done in terms of planning, development funding, development viability, partnership structures and portfolio management. #ukbtr #ukoperationalrealestate #ukmultifamily #savillsoperationalcapitalmarkets https://lnkd.in/eR7xt95c

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