Insights & Research

Latest 4 Minute Reads

• Article

  Portfolio deals boosting investment in the hotels sector

  

  The outlook for hotels is optimistic: according to our European Hotel Investor Intentions Survey, over 90% of respondents expect to maintain or increase their hotel investments in 2024.

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• Article

  Crisis or opportunity? The UK student housing shortage

  

  Now that A levels exams are over for another year, many 18 years olds are contemplating where they might be studying in September. The chosen course itself is of paramount importance, but location is also key.

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• Article | Intelligent Investment

  UK General Election 2024: The potential impact on the UK real estate market

  

  The release of the manifestos last week means we are now in a better position to evaluate the impact of different political administrations on the real estate market. Current polls suggest a significant lead for the Labour party with 43% of the vote, compared with the Conservatives at 22%.

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• Article | Intelligent Investment

  Is foreign investment in UK real estate rising despite the downturn?

  

  UK real estate investments hit a decade's second-lowest in 2023 at £43bn. Did foreign investors pause or divest from UK property during this downturn?

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• Article

  Will the emerging role of AI take your job?

  

  Artificial Intelligence in business is not new, with many forms of AI and Machine Learning already being widely used. Still the launch of ChatGPT, which reached 100 million active users in two months, has made AI tangible for the consumer. An increase in the personal use and familiarity of AI applications will help accelerate demand for AI in a business context.

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• Article

  Why are businesses hoarding labour amid rising insolvencies?

  

  The challenging economic backdrop with high borrowing and labour costs has led to steadily rising levels of insolvencies over the past three years. Over the past year, bankruptcies have averaged 6,290 a quarter, up 50% compared with 2019. This is similar to levels seen in the aftermath of the Global Financial Crisis.

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• Article

  London’s office take-up transformed by US law firms

  

  Since 2020, a large proportion of London’s biggest office leasing deals have been from the legal sector. Over that period, law firms have been particularly active participants in the pre-letting market, accounting for a third of all pre-lets in London.

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• Article

  Is there a case for building on London’s Green Belt?

  

  The Green Belt is vast. Across the UK, it covers around 1.6 million hectares (ha), which is an area 10 times the size of London. And in London itself, around a fifth of the capital is designated as Green Belt.

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• Surging electricity demand across UK cities makes a strong case for investing in rooftop solar

  

  The UK transition to net zero relies on increasing the use of renewably generated electricity. But with electricity demand predicted to double the UK by 2050, renewable energy generation and power infrastructure will need to scale up rapidly.

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• Article | Intelligent Investment

  Timing matters: Navigating the UK commercial real estate investment market

  

  Commercial real estate returns vary over time as conditions change in the economy and in financial markets. Since June 2022, we have seen UK commercial real estate values fall by c.22%. This has affected many investors in terms of their reported investment performance and portfolio value, while some will have seen further effects on their funding and business plans.

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• Article

  Is it the supply side that’s letting the senior living market down?

  

  In 10 years, the number of over 65s will have increased by 2.2 million people and will account for more than 22% of the UK’s population. This potential demand pool for age-appropriate housing has prompted investors to take note.

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• Forecasting mortgage rates in 2024 and beyond

  

  Mortgage rates are now past their recent peak. An 85% Loan-to-Value (LTV) 2-year fixed mortgage rate has come down from a peak of 6.35% in August 2023, to 5.03% in January 2024, according to the Bank of England.

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• Article | Intelligent Investment

  How will the use of debt finance change in 2024?

  

  Our 2024 Investor Intentions Survey suggests that sentiment is improving in real estate markets, with UK real estate investors intending to increase activity this year. One factor behind this shift is improved expectations for UK inflation and interest rates.

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• Article | Intelligent Investment

  Which sectors of the UK real estate market face the biggest debt refinancing challenge?

  

  Refinancing hit the headlines last year as the combined impact of lower capital values and higher interest rates made it more challenging for borrowers wanting to refinance real estate loans. Funding gaps emerged in cases where the amount of debt now available was less than the amount originally borrowed.

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• Article | Future Cities

  Despite the rhetoric, office occupier demand remains robust

  

  CBRE’s European Office Occupier Sentiment Survey 2023 pointed to a likely reduction in space taken by corporate occupiers. However, in Central London, occupier contraction is actually in the minority rather than part of a trend.

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• Article

  Will discounted non-green assets drive investment in 2024?

  

  2023 was not a stellar year for real estate investment with volumes down 30% to c. £44bn, and values continuing to fall.

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• Article

  How much investment might be needed to upgrade Central London’s energy inefficient office stock?

  

  There is a growing demand and supply imbalance in the Central London office market. Improving the energy efficiency of secondhand stock could be a step towards addressing this challenge.

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• Article | Adaptive Spaces

  Senior living offers more than just bricks and mortar

  

  Our latest article explores how downsizing by the UK’s senior population could free up housing equity, while also providing benefits to this generation.

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