The Hampshire town of Aldershot – home of the British army and a thriving high street – has made it into the top 10 of an index which seeks to identify real estate investment potential based on community-focused metrics.
Cambridge, York (pictured) and Edinburgh top the index, with Reading and Aldershot completing the top five (see the table below).
BNP Paribas Real Estate’s Next X locational analysis research scores towns and cities against metrics including access to good-quality childcare, food and beverage and independent retail offering, resident engagement with high streets, local business resilience and access to local talent.
With ESG becoming increasingly important to investors and occupiers, BNP PRE said these metrics demonstrate a strong case for real estate investment.
Aldershot is the only “non-city” in the top 10. Brighton and Southend also qualified, illustrating that seaside locations are becoming more investable post-pandemic. Edinburgh and Glasgow were the only two of the “Big 6” regional cities to be included.
The research found that the highest proportions of residents in Acorn Categories 1-3, indicating above-average consumer spending power, were in Reading (75%) and Aldershot (73%).
When it came to new business ventures, the research found that two-year average business start-up survivability rates were better in Burnley (83%), Aldershot (75%) and York (74%) than in larger cities.
Edinburgh had the highest percentage of the working population with a qualification at NVQ4 or above, outperforming the Oxford-Cambridge-London “golden triangle”.
BNP Paribas Real Estate partnered with the AI-driven geolocation data platform Visitor Insights to provide footfall data for the index (see the charts below). It found that the average two-year growth rate of visits to independent businesses on high streets in Next X locations outside London was around 78% between 2019 and 2021. This is much higher than the average for general retail occupiers, which was -6%.
Resident visits to high streets in locations such as Aldershot and Exeter grew substantially in relation to a pre-pandemic baseline in 2019, whereas resident footfall in the Big 6 regional cities is still lagging far behind.
Charlie Tattersall, associate director of research at BNP Paribas Real Estate, said: “The unique challenges of the past two years have forced millions across the UK to re-evaluate where they want to live, work and play. Following this rapid socio-economic change closely is fundamental for real estate occupiers and investors to understand the trends driving the evolution of the built environments and achieve market success.
“By overlaying our real estate market expertise with our Next X analysis, we can clearly see how there is underlying value for real estate investors and occupiers in locations with strong community spirit and cohesion, and this should influence real estate decision-makers when targeting new markets.”
Isabelle Hease, chief executive of Visitor Insights, added: “The application of geo data is giving real estate professionals an invaluable understanding of how engagement with communal spaces and town centres is changing, as well as the evolving nature of our high streets. Powered with this intel, they are moving away from the misconception that regional destinations are a risky investment.
“A strong, independent retail offer is now a deciding factor when looking at the liveability of an area, and with localised retail destinations witnessing an uptick in popularity, we can evidence this as a move towards secondary locations becoming increasingly attractive business targets.”
The analysis model aims to rethink traditional location analysis measures in order to give investors and occupiers new ways of looking at how UK towns and cities can help deliver their business strategies.
To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews
Click here to view market analytics for Aldershot and other towns and cities around the country >>
