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NEWSLETTER | 16 Sep 2021  

European hotels, Silicon Beach, and St John's Wood to benefit from post-pandemic trends


There's been lots of post-pandemic property market predictions and analysis this week, starting with a new study by Invesco suggesting that the European hotels sector, which has been badly impacted by the Covid-19 crisis, is set to resume its long-term trend of strong annual growth.

With that in mind, the repricing seen in European hotels over the past two years represents a strong opportunity for investors to acquire either core hotels for a long-term hold or undertake value-add projects as part of a manage-to-core strategy, according to Invesco.

Brighton could be a key beneficiary of the UK's post-pandemic switch to flexible and hybrid working as London-based business consider reducing their presence in the capital in favour of satellite offices, says a new survey by Knight Frank.

And Silicon Beach, as the south Coast resort has come to be known in recent years due to an influx of creative, gaming, digital and tech sector businesses, has been identified by 250 senior decision makers in large central London businesses as the most attractive location in the South East to set up a satellite or ‘spoke’ style office post-pandemic – beating other prominent cities such as Oxford, Cambridge, Royal Tunbridge Wells and Reading to the top spot.

Back in the smoke meanwhile, residential property in up-market St John's Wood has seen a post-pandemic 41 per cent increase in sales activity and a 12 per cent uplift in values (y-o-y), according to research by Beauchamp Estates, as well-healed buyers target properties with close access to both central London's amenities and green spaces.

"Some super prime buyers have traded Mayfair and Knightsbridge for Surrey, but many more have traded them for Regents Park and St John’s Wood," says Gary Hersham, Founder of Beauchamp Estates. "On a long-term basis property close to central London and protected green space is always likely to see positive capital growth and potential yield increases."

Staying with research now, and another new study from Knight Frank which points to a looming crisis in care home provision in the UK. While the UK's population of over-65s has grown by 22 per cent over the past decade, worryingly the supply of care home beds has increased by just 6 per cent over the same period.

On a more positive note, the European non-listed real estate sector is in good shape according to the latest pan-European INREV Quarterly Asset Level Index, which reveals that Total returns hit 3.01 per cent in Q2 2021, driven largely by capital growth of 2.10 per cent (up from 0.42 per cent the previous quarter) and marking the fourth consecutive quarter of positive performance, and the best quarterly result in three and a half years. 

And the future is also bright for the infrastructure and real estate sectors in general according to Preqin's 2021 Alternative Assets in Europe Report, produced in conjunction with Amundi.

“Real assets will be the winning bet for a post-Covid world," says Dominique Carrel-Billiard, Global Head of Real Assets at Amundi. "Most notably, a new post-Covid cycle could see a resurgence of inflation and continue to drive capital towards these asset classes which offer protection against inflation and the prospect of higher returns."

And finally, a new modern methods of construction (MMC) factory is hoping to play a big part ion alleviating the UK's housing shortage by producing 4,000 new homes per year. British Offsite, which has been founded with GBP35 million investment from Weston Group, will sell its factory-made exterior building and interior fit-out components to builders and contractors in the construction sector, including local and regional house builders.

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  LATEST NEWS
European hotels to resume long-term trend of strong annual growth, says new study by Invesco
Tue | 14 Sep 2021, 10:14
The European hotels sector will resume its long-term trend of strong annual growth as the market recovers from the impact of Covid-19, according to a new study by Invesco Real Estate. 
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Brighton could be big winner from shift to flexi working as London businesses eye 'silicon beach'
Tue | 14 Sep 2021, 13:49
Brighton has emerged as a potential key beneficiary of the UK’s post pandemic future, as central London businesses consider reducing their central London presence in favour of satellite offices as part of moves to adopt permanent flexible working arrangements. 
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Houses in London’s St John’s Wood see 41 per cent sales increase as pandemic propels house price growth to record levels
Tue | 14 Sep 2021, 09:59
The latest market research report from leading London based prime estate agency Beauchamp Estates reveals that London’s St John’s Wood has unexpectedly benefitted from the pandemic pandemonium that has hit many of the world’s prime property markets. House sales in the leafy prime central London market have increased by 41 per cent in volume and by 12 per cent in price (year on year).
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Supply of UK care home beds fails to keep up with demand, says Knight Frank
Thu | 16 Sep 2021, 10:17
The UK healthcare sector has seen stifled supply growth in care home beds in the past year despite ever-increasing demand, with data from leading global property adviser Knight Frank revealing that UK care home supply has grown by only 6 per cent in the last decade, while the UK’s over 65 population has increased by 22 per cent over the same period.
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Returns soar for European non-listed real estate in Q2
Wed | 15 Sep 2021, 09:42
Results from the latest pan-European INREV Quarterly Asset Level Index reveal the strong performance of European non-listed real estate. Total returns hit 3.01 per cent in Q2 2021, driven largely by capital growth of 2.10 per cent (up from 0.42 per cent the previous quarter) and marking the fourth consecutive quarter of positive performance, and the best quarterly result in three and a half years. 
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European alternatives on track for record fundraising year, says Preqin
Thu | 16 Sep 2021, 10:17
Europe-based alternative asset fund managers now hold EUR2.06 trillion in assets under management (AUM) as of December 2020, up from EUR1.81 trillion a year ago – an increase of over 13 per cent – and are on track to make 2021 a record year for fundraising, according to Preqin's 2021 Alternative Assets in Europe Report, which has been produced with leading European asset manager Amundi for the fourth year in a row. 
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New British MMC factory to build 4,000 homes per year
Tue | 14 Sep 2021, 10:03
British Offsite, a highly advanced manufacturing and construction company, has officially launched to the open market, offering the most technologically advanced light gauge steel panel system in the marketplace. 
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