There is no decline in new builds development in London, according to Molior London. Their sales are steady despite two national lockdowns during the year. Surprisingly, the company sold more housing units during 2020 than in 2019.
There are currently 82 examples in London of complexes of at least 1,000 homes that are either in the planning stages or underway, according to Molior London. Of course, not all of them will get permission, but many may materialise in the nearest future. The relaxed planning regulation will ease the process.
Rental housing became a popular strategy for major real estate investors through the pandemic. Investors bet on the relatively stable income it provides even in periods of volatility. For example, the Greystar United Kingdom growth strategy focuses on world-class cities lacking institutionalised purpose-built rental housing and student accommodations. That includes London.
Greystar Real Estate Partners LLC is a U.S. private equity firm specialising in all forms of rental housing. It raised a record $6 billion in 2020. Greystar plans to deliver the world’s tallest modular towers in Croydon, London. 101 George Street is a major project set to achieve the company goal of providing 10,000 multifamily units in London by 2022.
Croydon is one of the most affordable areas in the capital. Greystar is not alone in Croydon, with affordable homes for the masses. Large scale projects backed by BlackRock and DWS are underway in the area.
According to PureInvestor, investing in British student accommodation may yield from 5.3 to 8.5%, depending on the project. Most new projects across the country will have no free spots by the end of 2021. The company capitalises on a recent trend in students accommodation. Students look to move away from the traditional HMO (House Multiple Occupancy) models towards city centre-based private residences.
ORACLE CAPITAL GROUP is an investment and real estate development consultancy specialising in residential and commercial property projects.