Investors turning to specialist property sector

Investors turning to specialist property sector

A new report by Knight Frank has revealed how more investors are turning to specialist property as a source of long-term secure income. This covers areas such as student property, care homes, PRS and hotels.

Approximately £70.4 billion has been transacted in specialist property since 2007 highlighting how investors are turning to long-term safe investments in light of global political uncertainty.

Head of specialist property at Knight Frank, Shaun Roy, said: “The growing appetite for long-term secure investments with good covenants amid the current uncertainty has intensified, which is driving the demand for specialist property. Investors now regard the granularity of the income derived within the specialist sectors as a positive rather than a threat, and a facet that improves its durability of income. The outlook for the coming year is positive and increased liquidity should draw particular attention to specialist assets.”

The desirability of specialist property is expected to increase as investors look for assets that offer longer lease term agreements and index-linked rents.

Income returns within the specialist property sector reached 5.7% in 2016, surpassing the commercial property sector which has taken a bit of a hit since Brexit. If you’re looking to invest in the specialist property sector and would like to know more about current opportunities, please get in touch.