Connecting people & property, perfectly.

View any properties that contain the word(s) "{0}"
  • Residential
  • Commercial
  • People / Offices
  • Services
  • Research
price
price

4: NOWNERSHIP - THE RESIDENTIAL LIFECYLE

More people are choosing to live in rented accommodation. The idea of space as a service in the context of offices has been around for a few years. But while we've spent time exploring the techniques required to value this phenomenon, it is not justoffices where this change is happening. Societal, demographic and tenure changes mean that more people are choosing to live in rented accommodation operated by large-scale operators.

This journey starts at university. Student numbers are rising around the world, and an increasing number of undergraduates and post-graduates are living in purpose-built student accommodation that provides the space and services to suit their needs.

In many countries, new graduates often move directly into the rented sector. This is partly due to the flexibility on offer. Institutions have created a market by providing co-living that has affordability of accommodation in the best locations at its heart.

The appeal increasingly encompasses all age groups. Flexibility of living, alongside affordability issues, are also leading to an increase in renting among all age-groups in some geographies previously dominated by the owner-occupier model. This phenomenon is occurring later in the life cycle, too, as rapidly aging populations mean there's a rising demand for senior living accommodation, which can allow independent living for longer, as well as care homes, as nursing needs intensify. This structural move towards renting has led to residential investments taking their place among more established real estate asset classes.

For investors, the sector represents a potentially large opportunity. With notable exceptions in North America and parts of Asia Pacific, few of the markets popular with commercial real estate investors have yet seen the same scale of institutional investment in residential assets. This is changing rapidly, however, both as the development of new assets continues, and as we predict, global investors continue to rotate away from some ‘traditional’ types of commercial real estate investment.

STUDENT PROPERTY

University student numbers have hit record levels around the world. In China, enrolments have risen by 35% since 2014, and there are currently around 20 million students in the EU. Students are now more mobile, too, with the number studying outside their home country forecast to rise from five million to eight million by 2025.

KEY FACT: 19.6 million students in the EU in 2016

“G S A’S PRIME LOCATIONS, ALL-INCLUSIVE RENTS, CUSTOMER SERVICE AND GREAT COMMUNITY SPACES

CO-LIVING

Co-living offers tenants more compact units and larger shared amenities, with good locations and affordability at the heart of many schemes. Day-to-day bills are often included in the rent, and in some cases additional services such as cleaning or laundry are also offered. Some co-living operators also put on events for their residents, acting as a draw for new tenants while fostering a closer sense of community among those already living in the building.

KEY FACT: 73% of Australian tenants say affordability is a key priority when choosing a property

PRS

Already an established market in countries such as the US and Germany, investment-grade PRS is expanding rapidly in many markets, including the UK and Australia. Structural changes related to affordability and socioeconomic factors, as well as a desire for more flexible tenure, are creating increased rental demand not just for young professionals but across many age-groups. Policy changes are also impacting the market. In the UK, for example, increased regulation for individual landlords is suppressing the supply of rental accommodation, creating opportunity for large-scale investors. There is global demand among investors for this asset class which is largely demographic and employment-driven.

SENIOR LIVING RENTAL

The global population is ageing rapidly, with the number of people aged 60 or over expected to triple to more than three billion by 2100. At the same time, the idea of ‘retiring to the country’ is becoming outdated for some, with more older people looking to live in or around city centres, using care solutions that help them live independently for longer.

KEY FACT: By 2050, the number of people aged 60+ will nearly double to 2.1 billion globally

“AVERY BELIEVE THERE IS A STRONG DEMAND FOR RENTAL MODEL SENIOR HOUSING … AND WE ARE WELL POSITIONED TO DRIVE ITS EVOLUTION” Avery

HEALTHCARE

An ageing population and the increased demand for formalised care is a trend driving the healthcare sector in many regions. In Europe, the nature of the healthcare sector is drawing particular interest from real estate investors with long-term strategies, due to high occupancy rates (90%) and long lease lengths of healthcare assets of 25 to 30 years. Indeed, senior living and elderly care are representing an increasing share of real estate transactions.

INVENTING A SOCIETY WHERE PEOPLE LIVE LONGER IS A GLOBAL CHALLENGE – BY 2O3O OVER-65S WILL MAKE UP A QUARTER OF EUROPE'S POPULATION” Korian