Investment in the UK Residential Investment sector set to rise 68% by 2025

Research carried out by Knight Frank, shows that the sector which includes purpose-built student accommodation, investment-grade PRS and senior living, has a combined value of £87bn, and is on course to overtake the UK’s industrial property sector.
1 minute to read

  • The sector, which includes purpose-built student accommodation, investment-grade PRS and senior living, has a combined value of £87bn, according to Knight Frank research
  • The UK Residential Investment sector is set to overtake the UK’s industrial property sector, in terms of the value of investible assets by 2025

The Residential Investment sector – spanning purpose-built student accommodation, investment-grade PRS and senior living rental is set to overtake the UK’s industrial property sector, in terms of the value of investible assets, by 2025, according to our latest assessment of this emerging sector. 

The three markets making up Residential Investment had a combined value of around £46 billion in 2015 (including capital committed), according to Knight Frank’s new research. This has now risen to £87 billion. 

We forecast that the sector will reach a combined value of £146 billion by 2025, with investment-grade PRS overtaking the student accommodation sector in terms of size. 

In addition, when comparing only investible assets across some of the more well-established commercial real estate markets, the Residential Investment sector could expand to overtake the industrial sector by 2025, placing it firmly in place as an investment of choice for institutions active in the UK property market.

For further insight into this sector, Download the UK Residential Investment Report 2019 where we examine the trends across age-targeted institutional rental accommodation across the UK.