Ireland Could Benefit From £27.7BN Set To Target UK `Build To Rent` Sector In Next Five Years
London, 11th May 2017 – There is currently £27.7 billion worth of equity targeting the UK Build to Rent (BTR) sector over the next five years, according to CBRE’s Build to Rent Equity Barometer and the property consultants believe that there is potential for some of this capital to be attracted to invest in Build to Rent in the Irish market. The research suggests that almost half of the capital chasing Build to Rent opportunities in the UK market originates from North America. With the main constraint for investors continuing to be a lack of available stock and the ratio of deployable equity to marketed stock currently at 14:1, CBRE say that some of these investors are now looking for opportunities in the Irish market considering the well-publicised housing shortages prevailing in cities such as Dublin. Click here to read full report.
There has been a notable increase in appetite in Build to Rent from international institutions of late. Whilst London has traditionally been the focus of investors’ attention, the UK’s regional cities are becoming increasingly prominent as American funds begin to explore the market and demonstrate their willingness to move higher up the risk curve in regional cities that offer a strong investment case. Therefore, it is logical that if investors are willing to look at opportunities in regional UK, they are very likely to consider opportunities in Ireland where supply shortages are particular acute. Indeed, CBRE say they have seen increasing evidence of this trend over recent months.
We are urging the Irish Government to facilitate the delivery of the Build to Rent (BTR) concept, which is common in other jurisdictions and which has the ability to deliver scale quickly. Build to Rent is set to become increasingly popular in the Irish market with a significant weight of capital looking to invest in this sector and facilitate much-needed delivery. In 2016, Build to Rent was a $250 billion debt and equity market in the US. Institutional investors from across Europe and North America are looking for new markets to deploy their capital in the Build to Rent sector. CBRE have recently launched a Build to Rent Barometer to monitor both domestic and global Investor interest in Build to Rent across the UK and we firmly believe that some of this capital will find its way to Ireland considering the scarcity of housing in the Irish market at present.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company, now employing over 132 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie.