The burgeoning build-to-rent industry contributed 26% of £35bn of real estate transactions last year.
The sector’s ongoing growth is anticipated to push total investment to £50bn-£55bn this year, according to JLL’s property predictions.
BTR, student and later living are all anticipated to continue an upwards trajectory, from combined levels of just 9% in 2015 and 1% in 2010.
JLL said the sector will continue to thrive, with continued demand for city centre accommodation from young people. It pointed to development opportunities in repurposing the 40,000 vacant retail units, a number which is expected to double by 2026.
The agent also highlighted interest in life sciences and logistics spurring investment as the UK, with continued growth in e-commerce and the need for efficient supply chains.
Head of research Jon Neale said: “Despite concerns around the impact of the pandemic and subsequent economic fallout, returns from high-quality UK commercial real estate have never looked more attractive compared to other assets.
“Demand from global investors, driven by a wider range of structural factors, will remain strong over the coming year – as is already evident in the investment market.”
He added that “cities will remain the engine of growth” despite “a brief retrenchment” during the pandemic.
Neale said: “Over the coming cycle, city centres could actually strengthen over the cycle, with real estate at the centre of this.
“There will of course be winners and losers, and what will differentiate the most successful places are progressive and flexible urban planning policies, public-private partnerships, and a genuine mix of uses in key locations.”
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