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UK Operational Real Estate: The Sky's The Limit?

The UK's operational real estate will grow from £223 billion today to £880 billion at full maturity


Savills Summary Six

Here are our six key takeaways from this report:

  1. Residential operational real estate in the UK is still in its early stages, representing an exciting growth opportunity for investors and developers.
  2. Institutions are already active, but we expect appetite and activity to grow substantially as investors appreciate the underlying demographic drivers and the design & management considerations particular to the sector.
  3. The student accommodation sector is the most mature and liquid of the operational real estate markets: currently worth over £50 billion.
  4. Build to Rent is still evolving and has enormous growth potential: at just under £10 billion today, we predict at full maturity it will be worth almost £550 billion.
  5. The retirement living sector also has huge capacity to grow. Within it, the care home market is more established, with institutions and REITs already actively investing. A market for retirement housing investment is now emerging. We believe the retirement living sector could grow from today’s £120 billion to over £260 billion in value at full maturity.
  6. While there are differences in design and management requirements for these asset classes, operators and investors are waking up to the potential crossover between student housing, Build to Rent and retirement living. Opportunities abound for these parties to leverage their experience and expand across the sectors.

Read the articles within The Sky's The Limit? below.

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