In the last few years investors have started looking at emerging sectors in established markets for better returns and portfolio diversification. We take a look at the key issues real estate players should take into account when approaching this sector.
The industry has seen the alternative real estate market grow exponentially in the last few years. Student accommodation, for example, is increasingly being viewed as ‘mainstream’ real estate. It is unsurprising there has been an influx of so-called alternative real estate assets when taking into account the uncertain market and consumers’ demands for assets such as PRS (private rented sector), co-working offices and senior living.
In our Entering the mainstream guide, we identify the key issues real estate players should take into account when approaching this sector, such as:
Tax - How SDLT legislation (UK Stamp Duty Land Tax) will impact transactions in the UK and what investors in alternative asset classes will need to reconsider when financing assets.
Accounting – The trend of property owners now providing a service to customers will change how they manage their businesses.
Valuations – Higher returns come with higher levels of operational risk. We look at the risk factors that drive pricing?
Customer – How a customer-centric approach and a well-designed value proposition are key to an organisation’s financial objectives.
The future of alternatives – The impact of new entrants to market and emerging technologies continuously disrupting the industry.
If you wish to discuss any of the findings in our review, please contact Andy Pyle, UK Head of Real Estate & Real Estate Transaction Services.