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We look at the eight key real estate investment picks for 2024 across the residential, rural, and commercial sectors
- ‘Best in class’ occupational: A combination of location, situation, aesthetics and quality of accommodation. Difficult to describe, but you know it when you see it.
- Retirement for rent: More niche than ‘Build to Rent Houses’ as in previous years. Underpinned by new players and models in the retirement housing sector and structural imbalance in demand and supply.
- Development partnerships with an affordable twist: Expect to see increased collaboration between developers and affordable housing providers to deliver affordable homes in the event of a change in Government - especially the new generation of ‘for profits’.
Commercial
- Strategic sheds: Well-let logistics projects in good locations where the value over-corrected in 2021–2023. Buy in 2024 and sell into a hot market in 2026?
- Core offices that are priced as value-add: High yields and strong rental growth prospects mean that value-add returns will be briefly achievable on Core offices.
- Essential retail: Foodstores and neighbourhood-focused retail look cheap. Population growth, omnichannel retail and constrained stock all support entering these segments now for an income-focused strategy.
Rural
- Grade 3 arable land: Provides the balance of risk and offers flexibility as the UK works towards net zero emissions by 2050 (2045 for Scotland). In demand due to its versatility in providing solutions for emerging nature markets and being a key part of a productive food-producing system.
- Prime arable land: Food security has been heightened through the impact of geopolitical conflict and intense weather extremes. In response, prime arable land (with the main purpose of food production) will continue to appeal, particularly land with access to a resilient water supply.