Warren Buffett once said that “someone is sitting in the shade today because someone planted a tree a long time ago.”
It’s a metaphor that could certainly be applied to the current property landscape because those that take advantage and are proactive today will reap the rewards in the future.
Few would argue against the fact investing in the right property developments can deliver significant value to investors.
Identify the right people to work with and the right projects to invest in and profits will follow.
However, it’s not surprising that some without an in-depth knowledge of – or expertise in – residential and commercial developments may decide to become passive and watch with interest to see how the current financial landscape plays out.
Indeed, with terms such as ‘cost of living’, ‘interest rates’, ‘mortgage rises’ and ‘possible recession’ to name a few currently firmly embedded in the national narrative, some investors may think of sitting tight.
That could, however, be a big mistake – as seasoned property investors and developers seize opportunities as others potentially sit in wait in a temporary state of inertia.
Why are experienced property investors and developers being proactive? Here are just three reasons.
The push for sustainable housing
In 2021, a press release from the UK Government was titled: ‘Rigorous new targets for green building revolution.’
The first paragraph read: ‘All homes and businesses will have to meet rigorous new energy efficiency standards to lower energy consumption and bills, helping to protect the environment.’
Of course, the conversations around environmental concerns have only intensified in the two years that have followed and this release – and the ever-growing realisation of the importance of sustainability in our world – should be viewed as an unmissable opportunity for investors.
The sector is ready for growth in both of the commercial and residential spaces as part of the sustainable agenda and the opportunity to combine profits with doing good is an incredibly attractive prospect.
Property targets remain
Towards the end of 2022, the then Housing Secretary Michael Gove maintained the Government’s advisory target to building 300,000 homes every year by the middle part of the current decade.
With the desperate need for new housing so high up the political agenda – and extremely likely to remain so in the years to come irrespective of which party holds office – one thing’s for sure: the opportunities for investors and developers alike are out there, yet only some will take full advantage.
“Those players that act now and identify profitable projects (while others may bide their time) are likely to be the ones who achieve the greatest value and reward particularly as a number of players have removed themselves from the market thereby increasing the amount of opportunities available to those that decide to continue with business as usual”
Supply and demand
Some argue Britain is currently in the grips of a housing crisis as many struggle to get on the property ladder while others (believed to be in the millions) live in sub-standard accommodation.
Meanwhile, despite the uncertain economic climate, a Q2 Economy and Property Market Update from RICS suggests ‘the strength of the lettings markets shows no sign of abating, with demand remaining strong and supply still constrained.’
Put simply, when you combine constrained supply with clear demand, opportunities will inevitably exist.
At Zunikh, we understand property and we understand opportunity.
Our vastly experienced professionals are not just the best – they work with the best too; identifying and delivering on property developments that complement an existing portfolio which demonstrates exceptional value to end-users and returns for key stake holders, including investors.
Our investment and development strategies are innovative and diverse, worked to a blueprint designed to deliver profits, growth and positive results for all stakeholders.
If you would like more information about Zunikh or anything featured in this article, contact us now.
By Sean Gough
Chief Commercial Officer