The residential sector has narrowly overtaken all other use types to become the highest value asset class for investments in H1, according to exclusive figures from EG Radius.
The total value of residential investment sales in H1 was £2.77bn across just 94 deals. This compares with £2.76bn spent on office investments across 582 deals and £2.75bn on industrial investments across 621 deals.
This gives the residential sector a 23.8% share of the investment market by value.
It is a sharp rise against H1 2023, when residential sales accounted for 15.5% of all investment spend. This was a smaller share of the market than both industrial (18.9%) and offices (43.1%).
Notable residential deals in H1 2024 included Vistry Group’s £580m sale of a portfolio of 1,750 homes across south-east England to Blackstone and Regis Group, Apollo Global Management’s acquisition of the 699-bed student accommodation scheme Wembley Ark for £125m from DWS, and L&G’s Student Living Platform’s £122m deal to buy two assets from Global Student Accommodation.
The favourability of residential as an asset class for private sector investment will come as welcome news to the new government as it embarks on plans to deliver 1.5m new homes across the country.
Radius figures also show the investment market has seen a marked increase in yields despite an overall drop in volumes.
The news comes as EG publishes its definitive ranking of 2024’s H2 deals, which reveals which agents have topped the leaderboards across every sector and region in the UK.
Send feedback to Jim Larkin
Follow Estates Gazette
