Pick of the bunch: W/E 13th December 2024

Highlighting a selection of our latest opportunities across each of our disciplines, alongside global market insights for real estate professionals, weekly.

Residential Real Estate

Housing markets across Europe and Singapore are grappling with shortages, rising prices, and new regulations. In Dublin, affordability has become the primary challenge despite improvements in supply, with high rents and pet restrictions adding to the difficulties. The Netherlands has introduced the Affordable Rent Act, aiming to regulate rents and increase accessibility, though demand outpaces supply in cities like Amsterdam. Germany’s rental market faces fierce competition due to limited housing and high rental costs, particularly in major cities. In Portugal, both Lisbon and Porto are seeing a surge in demand, driving up rental prices and creating a competitive market where securing housing early is critical. Meanwhile, Singapore’s market is cooling overall, but high-end properties are still experiencing demand, especially four-bedroom units.

The UK property market is currently experiencing a unique trend, unlike the typical winter slowdown, as both buyers and sellers, particularly in England and Northern Ireland, are accelerating their sales and purchases. This surge is driven by the anticipation of Stamp Duty threshold changes, set to take effect in April 2025, which could result in significant savings. According to a recent Propertymark report, based on data from around 100 sales and 100 letting agents across the UK, sales volumes in October 2024 were 23% higher compared to the same month in 2023. Stock levels also saw a slight increase, with an average of 49 properties available for sale per branch. While tenant demand dropped in October, with 93 new prospective tenants registered per branch, the overall demand for rental properties continued to outpace supply. With around nine applicants competing for each available property, the market remains highly competitive despite the decrease in new tenant registrations.

The English Private Landlord Survey 2024 highlights the challenges facing the Private Rented Sector (PRS) in England, revealing that 94% of landlords have small portfolios, with nearly half owning just one property. The survey notes a shift in demographics, with a rise in female landlords and younger individuals entering the sector. While 82% of tenants are satisfied with their accommodation, housing quality remains a concern, especially regarding issues like damp and disrepair. Legislative changes, such as reduced tax relief and energy efficiency requirements, have increased costs for landlords, prompting some to consider selling properties or raising rents. Despite these challenges, demand for private rentals remains high, with nine applicants per property on average, emphasising the continued importance of the PRS in meeting housing needs.

Featured Employer

GKR International - Real Estate Talent Specialists has been retained by Bridges Properties to recruit an experienced Sales Valuer to join their market-leading team working across the local, West Lothian markets within Scotland. Contact Michael Woda to find out more about this exciting opportunity!

Contact: Michael Woda, Jessica MacLeod, Mitchell Dring, Bradley Hellier, Michael Cartmill, Ethan Lewis

Property Management

The Insurance Council of Australia (ICA) has released a policy paper proposing 17 recommendations to improve consumer outcomes in strata complexes. Key proposals include stricter education requirements for strata managers, better fee transparency, and enhanced land-use planning to ensure safer property locations. The report also calls for updates to the national building code to prioritise resilience, stronger compliance in design and construction, and enforcement of maintenance protocols by owners' corporations. Additionally, new laws set to take effect in 2025 will require brokers and strata managers to obtain client consent for commissions, while expanded disclosure requirements in New South Wales will begin in February 2025.

The residential property management sector in Europe is expected to experience continued growth in 2025, driven by strong demand for rental properties and the ongoing challenges of supply shortages. Cushman & Wakefield ’s EMEA Outlook 2025 highlights the importance of residential properties in the real estate market, noting that the demand for living space remains robust across many European cities. Property management companies are increasingly focusing on delivering high-quality, well-maintained rental homes to meet the evolving needs of tenants, with sustainability and operational efficiency becoming key priorities. As interest rates remain high, there is an increased focus on managing costs and optimising the value of residential portfolios through effective property management practices. The sector is also benefiting from the expansion of Build to Rent platforms, which offer long-term, professionally managed rental options that cater to both institutional investors and tenants. This shift is expected to drive further growth and investment in property management services as the demand for quality residential living spaces continues to rise.

Contact: Rose Lock, Emma Bradshaw

Business Support

The announcement of a timeline for the Leasehold and Freehold Reform Act (LFRA) 2024 has brought much-needed certainty to the leasehold sector. Last year, the Leasehold and Freehold Reform Bill had not yet received its First Reading in Parliament, and while the legislation had been in the works since the Law Commission’s 2018 report, it was rushed through in the final days of the previous government, requiring secondary legislation before it could be fully implemented. The government's recent Ministerial Statement, published on 21 November, outlined key reform milestones, including the implementation of Right to Manage reforms in early 2025 and consultations on key issues such as capitalisation rates, estate charges, and service charges throughout the year. The government’s commitment to addressing specific flaws in the legislation, including those related to the valuation regime, marks an important step forward. Though the reforms may not meet all expectations, the acknowledgment of complexity and the provision of a clear path forward is a welcome shift for leaseholders and professionals affected by the ongoing uncertainty.

Contact: Anuradha Deb

What key moments defined your job search this year?

1. Discovered a new career path🔎 (38%)
2. Headhunted for a niche role 🎯 (33%)
3. Received multiple offers 🤩 (19%)
4. Landed an unexpected role 💪 (10%)

The results of this poll highlight some interesting trends in the job market. It’s clear that many candidates are exploring new opportunities and paths, with 38% discovering new career directions, which suggests a shift in priorities and interests. The 33% who were headhunted for niche roles points to a growing recognition of specialised talent in the job market, while the 19% who received multiple offers indicate a competitive landscape for skilled professionals. The 10% who landed unexpected roles could be an indication of the flexibility and adaptability required in today’s dynamic job market.

At GKR International, we can help candidates navigate these key moments by leveraging our extensive network and understanding of the real estate sector. Our team is skilled in identifying unique opportunities, whether it’s a niche role or a career pivot, and providing tailored advice to help candidates make the most of the offers they receive. Get in touch with our team to find out more!

Built Environment

Berkeley Group Plc has launched its new ten-year strategy, Berkeley 2035, aiming to support the Government's housing goals and address the ongoing housing crisis. The strategy focuses on increasing return on capital through optimising existing sites, advancing new pipeline developments, and investing in new land. A key element is expanding its Build to Rent platform, which was introduced in June and aims to significantly grow its value. The firm has allocated £7bn of its free cash flow over the next decade to land, investment, construction of the Build to Rent platform, and shareholder returns, with an initial £1.2bn for its Build to Rent commitment. Berkeley plans to add 4,000 homes across 16 sites to its Build to Rent portfolio, with construction already underway on 833 homes across six regeneration sites. The strategy sees the Build to Rent sector as crucial for meeting the Government's housing targets, with Berkeley continually reviewing its capital allocation to accelerate delivery and create shareholder value.

The European construction industry has faced a challenging 2024, with a forecasted decline of 2.4% in output across 19 countries, marking one of the toughest years since 2020. High property prices, elevated interest rates, and construction costs have notably impacted the new residential construction market, which continues to struggle. However, a modest recovery is expected in 2025, with a 0.6% growth forecast. EUROCONSTRUCT 's outlook predicts that the housing sector will stabilise in 2025, with more significant improvements anticipated from 2026, driven by demographic shifts and favorable housing renovation subsidies. While the non-residential construction sector and residential renovation markets are also expected to face challenges in 2025, civil engineering projects are forecast to experience notable growth, fueled by investments in transport and energy infrastructure.

In the Netherlands, the government’s requirement that two-thirds of newly constructed homes must be affordable is causing a significant slowdown in the housing construction market. This mandate, which applies to social housing, mid-range rental homes, and homes sold for less than 390,000 euros, has made many housing projects unprofitable. As a result, about 40% of planned housing projects are stalled, as developers cannot balance the returns from affordable homes with the more expensive homes needed to cover costs. In the Amsterdam area, the requirement is even stricter, with 80% of homes needing to be affordable. The Dutch real estate advisor CBRE suggests that relaxing this rule could lead to the construction of thousands more homes. However, experts also stress that making more land available for construction could be the key to accelerating housing development in the Netherlands.

Contact: Michael Woda

Commercial Real Estate

The Greek government has proposed a draft amendment to extend the 3% cap on rent increases for commercial properties, including office spaces, stores, and warehouses, through 2025. This measure, aimed at preventing sharp increases linked to inflation, has been welcomed by business owners and shopkeepers, with the ESEE - Hellenic Confederation of Commerce & Entrepreneurship (HECC) expressing full satisfaction. The amendment, expected to pass unless there are significant political changes, will expire at the end of 2025 unless renewed. Owners' groups have yet to respond to the proposal.

The Canadian commercial real estate (CRE) market is showing signs of recovery as it heads into 2025, though uncertainties remain due to economic and geopolitical factors. A surge in population growth, largely driven by immigration, is reshaping housing demand, particularly in Ontario and Quebec, where starter homes are declining and demand for condos and senior-oriented properties rises. While inflation is decreasing and interest rates are stabilising, housing demand is expected to rebound by late 2025. Key CRE sectors, such as office occupancy, warehouse demand, and retail rents, are improving, with Toronto, Vancouver, and Alberta attracting renewed investor interest. However, a bid-ask gap and market noise are delaying transactions, and while alternative asset classes like data centers and student housing are gaining attention, the office sector shows mixed performance.

Australia’s property market is experiencing a significant shift, with the release of the Property Outlook Report 2025 highlighting eight key trends to watch in both residential and commercial sectors. One standout trend is the retail sector, which is poised to lead commercial property performance in 2025. This marks a dramatic change from recent years when industrial assets were dominant. According to Vanessa Rader , head of research at Ray White One Group , retail assets have delivered strong returns for two consecutive quarters, outperforming other sectors. Despite the rise of online shopping, physical stores, particularly in metro, neighborhood, and subregional centers, have shown remarkable resilience. With limited new supply and strong population growth, retail is expected to remain a major area of focus for investors in 2025.

Contact: Rose Lock

Investment, Finance & Accountancy

Starting in 2025, France’s MaPrimeRénov program will introduce changes to its grant system, particularly affecting higher-income households. The program provides financial aid for home renovations, energy-efficiency improvements, and certain purchases like wood stoves. Grants are determined based on income and household size, with different levels of support for low, middle, and high-income households. For example, the grant for purchasing and installing wood stoves will be reduced by about 30%, and the amount of assistance for larger energy-efficiency projects will be lower for wealthier applicants. Specifically, the grant for renovations that improve energy efficiency will decrease for high-income households, from 30% to 10% for two-category improvements, and from 35% to 15% for three-category improvements. In addition, low-income households that previously received 70% of the renovation cost in advance will now receive 50%. These changes only affect new applications after January 1, 2025, so those who apply before this date will still receive the current grant amounts.

Vietnam’s residential property market is gaining significant attention within the Asia-Pacific region, particularly among High-Net-Worth Individuals (HNWIs) and investors. According to Knight Frank ’s recent Asia-Pacific Horizon Report, the market is thriving due to strong GDP growth, urbanisation, and its strategic positioning in the “China+1” strategy. Vietnam’s luxury real estate sector, especially in Ho Chi Minh City and Hanoi, is seeing impressive growth, with high-end apartments priced between USD5,400 to USD15,000 per square metre. The country’s GDP is forecasted to grow by 6.1% in 2024, making it the second-fastest-growing economy in the region, just behind India. This economic momentum is complemented by significant infrastructure developments, such as highways, metro systems, and airports, enhancing connectivity and driving property values in emerging urban areas. Meanwhile, JLL ’s latest report highlights the UAE’s continued real estate market strength, with impressive growth in off-plan property transactions and rising investor confidence in Dubai and Abu Dhabi. Lastly, Colliers ' 2025 Global Investor Outlook anticipates a surge in Asia Pacific real estate investments as lower interest rates and a narrowing of pricing gaps drive renewed optimism across the region.

Greek banks and servicers hold over eight billion euros in residential properties, many of which remain unoccupied after foreclosure, contributing to a housing shortage in urban areas, particularly Athens and Piraeus. The government is considering increasing the property tax rate (ENFIA) for these unexploited properties to incentivise their entry into the housing market. However, many of these properties face legal and building code issues that prevent immediate sale, with analysts suggesting long-term leasing as a potential solution. Servicers have proposed allowing the sale of these properties at a significant discount, shifting the responsibility for resolving issues onto buyers.

Contact: Lee Riley

In partnership with Druce:

Druce, a name synonymous with luxury real estate since 1822, aims to expand its presence across multiple territories London, partnering exclusively with GKR International - Real Estate Talent Specialists, to bring top-tier talent into the business. Contact our team to discuss your interest in joining Druce's reputable team.

Email: drucecareers@gkrinternational.com

Website: www.gkrinternational.com/clients/druce-careers

Contact: Lee Riley, Grant Kaveney

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