Residential, build to rent and London offices are all seen as better long-term investment prospects than student housing, according to a client survey by lender Investec.
Investec asked 130 of its clients for their views on student housing and other sectors in light of the UK’s proposed exit from the European Union.
Most of those who took part were principally focussed on residential development (38%), commercial development (25%) and commercial investment (16%).
They were asked which investment and development sub-sectors would generate the best returns in the short (one year), mid (three years) and long-term (10 years).
More than a third expected student housing to offer the best investment returns in the short term. For the mid term, student housing and build to rent were the two most popular choices. But for the best long-term returns, most chose either residential, London offices or build to rent.
For development returns, most expected either student housing or residential to offer the best returns in the short term. But build to rent over took student accommodation as a better mid-term prospect and only 3% of those surveyed expected student housing to offer the best returns for development over the next 10 years.
Which of the following real estate sub-sectors do you think will generate the best returns for development in the short term?
Which of the following real estate sub-sectors do you think will generate the best returns for investment in the short term?
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