Q1 2023 sees record investment in SFH BTR

The latest data from global real estate advisor CBRE shows a significant level of investment in the single-family housing (SFH) Build to Rent sector in Q1 2023.

Q1 2023 sees record investment in SFH BTR | BTR News
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Q1 2023 sees record levels of investment into SFH Build to Rent, the latest data from CBRE shows.

The Q1 total includes £380m of investment into SFH Build to Rent – the highest recorded quarterly figure for this sub-sector of the market.

This included the sale of the Domus portfolio by Goldman Sachs to PGIM’s affordable housing fund.

Following the record levels of investment into SFH Build to Rent in Q1 2023, investment levels were up 5% on the same period last year, and double the total in Q4 2022; which experienced low volumes in the aftermath of the mini-budget.

“The Living sectors remain favourable to investors, and in spite of economic headwinds, we are seeing liquidity from lenders and an appetite to sponsor residential investment assets, which has provided confidence to the market. The level of investment transactions in Q1 together with continued occupational strength has helped to stabilise yield sentiment.” 

Jason Hardman, Head of Residential Valuation and Advisory Services, CBRE

This positive momentum is expected to continue in Q2 2023, with provisional CBRE data showing £2.1bn worth of under offer and with new opportunities ready to be launched to the market.

The new data follows BNP Paribas Real Estate’s data, revealing Q1 2023 Build to Rent investment as a whole exceeded £1.1bn.