The world of property can be volatile, not least because trends can be influenced by a myriad of different factors.
In the UK, for example, the Government’s 2019 manifesto pledge to see 300,000 new homes built every year by the mid-2020s was a clear opportunity for the property sector and investors.
‘Experts agree’, said the then Chancellor of the Exchequer Philip Hammond when announcing the plan in 2017 ‘that building 300,000 new homes a year would start to make inroads on the affordability of housing.’
Yet few could have envisioned the global forces which would ensue. We had the Covid-19 pandemic (which itself shifted the landscape with changing consumer habits and increased numbers of workers operating from home).
We continue, too, to live through a squeeze in living standards and disposable income, adding to the pressures on homeowners, would-be homeowners and commercial enterprises.
Add in other important considerations such as an ever-prominent need for sustainability within the property sector and an increased focus on corporate social responsibility and ethical practices (areas which form a linchpin of Zunikh’s operations) and one thing becomes abundantly clear.
In the absence of a crystal ball, the ability to expertly and accurately analyse and identify insights and trends in the property market – in the short, mid and long-term – is essential and a key component of success and ultimate return on investment for investors.
It’s essential to both developers and investors – who rightly demand a return on their commitment. It’s essential, too, to the end users – the people who make their lives and create long-lasting memories in the developments we create.
Here are three trends we are seeing in 2023 in the market.
Appetite for newbuilds to remain high
Whilst period properties have always held an appeal, the relative cost effectiveness of new properties means newbuilds will likely continue to be heavily in demand for house buyers.
Newbuilds are seen as a good way of controlling costs, given they’re almost certainly going to be more energy efficient than older buildings.
Prospective house buyers are also likely to be influenced by the fact appliances and the like will be new – mitigating the risk of any required outlay for home improvements and/or unforeseen issues (such as broken boilers or future structural issues).
Urban regeneration to be key
The renewal of rundown spaces within towns and cities, which have seen minimal investment over a number of years, is a trend we see gaining in prominence.
With the right due diligence and by identifying the right opportunity, urban regeneration ticks a number of boxes.
Projects can be versatile and involve commercial or residential developments (or a combination of the two); there is likely to be a positive sustainability/environmental angle; there is the possibility of significantly increasing the value of the land; and the urban location is likely to be in high demand.
All this represents outstanding potential for investors.
Rental to remain king.
Demand for rental properties continues to be strong and experiencing growth and this is likely to remain the direction of travel moving forward, securing the build-to-rent sector as one with huge potential for developers and investors alike.
With house prices remaining high, rental is a key consideration for many, and this will likely both drive rental prices as well as the price of properties more generally, which could represent significant opportunities for property investors.
At Zunikh, we utilise the wealth of knowledge, experience and abilities of market leading professionals that we have within our best-in-class team to gain important insights.
If you would like more information about Zunikh or anything featured in this article, contact us now.
By Sean Gough
Chief Commercial Officer