Mass market “for sale” residential housing is the property type seen as most likely to attract institutional money as it is regarded as the best investment opportunity in terms of returns, the study found.
Half (50%) of those interviewed strongly agree that institutional investment is central to delivering UK residential property building targets, while another 48% slightly agree.
More than one in five (22%) forecast a dramatic increase in the level of funding institutional investors provide for UK residential property between now and 2028 while 72% forecast a slight increase.
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Some 12% highlighted single family rental properties while 3% chose later living housing and 2% multifamily rental property.
Parik Chandra, partner and head of specialist lending at Downing, said: “Institutional investors are aware of their significant role in assisting the UK to reach its targets for residential property development, and they are reinforcing this recognition with plans to increase their funding in this area.
"The focus of these investors on mass market residential housing aligns with Downing's experience.
“We have observed a notable uptick in institutional investment in this sector compared to last year and expect this upward trend to continue.”
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