The island life goes year round

Barbados has long been a favoured winter-retreat for the wealthy, but for a growing number of high-net-worth buyers, it’s become a year-round base for working, living and investing.

The desire for a long-term base is driving prime property market activity: sales of US$2 million properties by Terra Luxury, Knight Frank’s partner on the Island, surged 67% year-on-year between July and October 2025, according to a new Knight Frank Luxury Digest. Growing demand for high-specification properties suited to year-round living has prompted developers to act. New inventory is emerging across key estates such as Apes Hill, Royal Westmoreland, alongside the island’s first wave of branded residences, due to arrive in late 2026/ early 2027.

This trend extends well beyond the Caribbean. Across the world’s top second-home destinations, developers are stepping up activity to meet growing demand for homes that better suit longer stays. Buyers are prioritising larger, more functional properties that support extended living, with the added appeal of ‘lock-and-leave’ convenience – serviced and managed homes that deliver hotel-style comfort. For more on the global picture, see our Residence Report, or explore local dynamics in our latest Alpine Property Report. 

In Barbados, two headline developments are currently underway. Pendry Residences Barbados, which is being delivered by the contemporary subsidiary of California-based Montage International, will perch on the island’s northwest coast. The project will include 46 fully furnished private villas with access to hotel resort facilities. Meanwhile, the Hyatt Ziva development, opening in 2027, will combine several hundred hotel rooms with 28 high-end condominiums, offering a full-service beachfront experience. While these two projects mark the beginning of the branded residences sector in Barbados, growth in neighbouring markets – most notably the Bahamas (report out next week) – suggests more won’t be far behind.

Bills included

July to September 2025 marked the largest third quarter on record for purpose-built student accommodation (PBSA) investment in the UK, with £1.83 billion transacted. Year-to-date investment stands at £3.4 billion, up 3% on the same period in 2024.

What was once a developing niche has evolved into a mature, multifaceted market – during the past decade, investors have committed nearly £50 billion to UK PBSA assets. One third of all global capital spend on PBSA assets since 2019 has taken place in the UK.

But while the headline figures point to a liquid market, in some cases deal times have lengthened. Appetite remains strongest for first-generation standing stock – especially where there is potential to deliver value-add returns – but fire safety requirements, remediation work, and a later leasing cycle are all contributing to delays. We cover all this and more in a new UK Student Accommodation Outlook. Katie O’Neill's report breaks down capital flows, alongside unpacking the funding and policy landscape.

We also have a fresh survey of 2,500 incoming students, conducted in partnership with UCAS and now in its sixth year. Accommodation continues to play a pivotal role in students’ decisions on where to study. More than 80% of applicants surveyed said they started researching accommodation options before having a confirmed offer from a university. Nearly a fifth looked into accommodation options before even deciding where to apply. Cost, quality and the inclusion of bills and provision of facilities top their list of priorities. These were closely followed by perceived value for money and location.

See the report for more. 

Tipping the balance 

The minutes of last week's Bank of England meeting divided the Monetary Policy Committee into two groups; one that reckons weakening business activity and falling employment will push the rate of inflation below target, and another that thinks wage growth and underlying inflation isn't slowing quickly enough given the weakening economy. 

The latter group prevailed in the vote, and the base rate stayed at 4%, but labour market figures published yesterday may be enough to tip the balance by the December meeting. The unemployment rate rose to 5.0% from 4.8% in the third quarter - the highest reading since the three months to February 2021, official figures showed. Pay growth slowed slightly to 4.6%, but that was inflated by the public sector. Private sector pay growth eased to 4.2%, also the weakest since the three months to February 2021.

The Bank “will react to weaker than expected job growth with a rate cut in December, and will be eyeing a follow-up reduction in early 2026”, Rob Wood, chief UK economist at Pantheon Macroeconomics, told the Times. 

Resurgent TMT

Some sectors are proving more resilient than others, which is driving activity in the office market. Following two years of subdued performance, a resurgent Technology, Media and Telecommunications (TMT) sector has emerged as a key driver of office demand across the south east. 

GVA for the broader digital and communications-intensive industries is estimated to have grown by approximately 6% in 2025, with headcount in the region’s TMT sector forecast to rise by a further 6% over the next three years. Occupiers from the sector have accounted for 634,000 sq ft of take-up across 68 transactions in the region so far this year, representing 24% of total market activity, according to a new Knight Frank South East and Greater London Offices report. 

In the third quarter of 2025, a total of 806,000 sq ft of leasing transactions were completed across the region, representing a 4.2% increase compared with the previous quarter. Each quarter of 2025 to date has recorded take-up above 800,000 sq ft, marking the first time since 2019 that activity in the first three quarters has consistently surpassed this level. As a result, year-to-date take-up has reached 2.7 million sq ft, reflecting a 15% increase on the same period in 2024 and standing 20% above the long-term average. Overall, leasing activity in 2025 so far represents the strongest performance recorded since before the COVID-19 pandemic.

In other news...

Lloyds quietly builds £2bn rental portfolio to become major UK landlord (FT), work starts on Manchester’s Nobu skyscraper (FT), one in six employers expect job cuts from AI in next year (Times), and finally, Dubai’s Unbuilt Penthouses Spark Bidding Spree Among Ultra Rich (Bloomberg).