The Build to Rent market is relatively new in the UK where it has gained traction over the past eight years. Over the past five years, CBRE has tracked £10bn of investment in the Build to Rent market, a sector that continues to grow.
JLL’s findings revealed that although investment in the European Build to Rent market fell by 7% from 2018, the sector outperformed expectations and represented the second strongest year based on the volume of Build to Rent homes. Germany, Sweden, Poland and Ireland attracted the strongest investment, with the UK following closely behind.
“European multifamily [Build to Rent] assets continue to attract interest from investors seeking stable cash flow.”
“Mature markets such as Germany and the Nordics performed extremely well, especially against a backdrop of regulatory intervention by legislators. Emerging multifamily [Build to Rent] destinations, such as Ireland and Poland, have also seen more meaningful allocations of capital.”Matthew Richards, Chief Executive of EMEA Capital Markets, JLL
Investment in the Build to Rent market in Germany rose by 8% on 2018, with investment reaching £16.6bn – even though long term renting is seen as unexceptional. Germany has seen growth in investment consecutively for four years.
Mergers, acquisitions and future deals has contributed to Sweden’s strong Build to Rent activity – driving investment in the Nordics to £10.6bn, up 7%. Poland and Ireland also saw growth in investment for Build to Rent activity, 30% and 141% respectively year on year. And Build to Rent was one of the most attractive assets in the UK, which attracted over £4.9bn investment in 2019.
“The formal departure of the UK from the European Union is likely to bring improved investor confidence in UK multifamily [Build to Rent] for 2020, and we expect a greater pool of international investors to look at the UK as an attractive place to deploy capital.”Philip Wedge-Bernal, EMEA Living Research & Strategy Associate, JLL