Large Scale UK Residential Investment: Achieving Market Maturity
This research reviews the evolution of UK residential sector as an institutional investment and considers the prospects for further growth. It draws primarily on the institutional investment surveys the IPF conducted between 2012 to 2020, as well as a series of interviews with senior investment professionals. The report highlights the significant growth in institutional investment over the past decade but recognises that market maturity is still some way off. Supply of suitable stock remains a significant stumbling block and government support is needed, particularly to help with the current planning regime. Strategically, investors are considering a broader offering in their portfolios, including single family housing; accommodation that appeals to a wider spectrum of renters, including retirees; and affordable housing options. The influence of ESG on the sector is expected to intensify in the coming years; it has already had a significant impact on building design.
Click here to access the full report.
Operational Real Estate: Risks & Rewards
Operational Real Estate is currently most associated with alternative real estate types and, for many investors, is seen as complex, illiquid and higher risk. However, deal volumes are increasing as both specialist and core funds add this category of investment to their portfolios, attracted to the opportunity it offers to capture the extra upside associated with well-run businesses.
The research, led by Didobi Limited, identifies and evaluates risks associated with investing in operational real estate that may be unfamiliar to many real estate professionals.
Mitigating Behavioural Influences on Investment Decision-making
Much has been written in general finance on the behavioural influences that interfere with rational decision-making but little that has focused specifically on real estate.
The IPF’s objectives in commissioning Intrinsic Value Real Estate Advisers to conduct this research are to help those involved in making decisions within our industry to understand the behavioural influences they may encounter and to propose potentially mitigating strategies that investors can adopt to reduce the potential for these behaviours to influence their choices.
Click here to access press release.
The report is scheduled for publication in Q2 2021.
Investment Implications of the Flexible Space Market
This research considers the investment implications of the predicted evolution of the flexible space market in the office sector, building on the findings of the Short Paper Property Ownership in a Flexible World, published in February 2020.
Aiming to estimate the impact this shift may have on the future risk-return profile for office investments, publication of this report has been deferred in order to consider the implications of the COVID-19 pandemic on occupational requirements and the implications for operators’ business models.
It is hoped that this research may be concluded in late Q2 2021.
Global Pathways to Zero Net Carbon Emissions
Transitioning the global real estate sector to net zero carbon emissions represents an unprecedented challenge requiring exceptional levels of collaboration and alignment around a set of clear and consistent objectives.
Verco Advisory Services have been appointed to conduct research in order to identify how these challenges vary by subsector and geography and to review the extent to which these are addressed by the range of frameworks currently in use by the market, as well as what changes may be required. Potential unintended consequences will also be explored, such as a shortage of capital for harder to decarbonise assets and high embodied carbon emissions from demolition and re-building to meet stringent operational energy and carbon targets.
The report should be available in the autumn.
Turnover Leases: The difference and interaction between Value and Worth
Real Estate Strategies have been commissioned to investigate the rising prevalence of turnover leases, together with the variations in valuation approaches, to permit to a comparison of the value and worth of turnover leases. The research will seek to quantify the impact of different proportions of base and turnover rental elements on the assessment of worth, having regard to variations in levels and volatility of rent and non-rent growth.
The research findings are scheduled for publication in the autumn.
TO BE TENDERED/COMMISSIONED
Size & Structure of the UK Property Market
The IPF first published research into the size and structure of the UK property market in 2005, establishing a method of estimation and compiled data to provide breakdowns by property type, location and investor type, as well as comparing the investment market with the size of the overall UK stock of commercial property and other investment markets.
In moving its production to a biennial report, the study will undertake a thorough assessment of methodologies, updating data sources and incorporating improved estimations, as part of the next (end-2020) update.
TOPICS UNDER DEVELOPMENT
UK Consensus Forecasts
Quarterly Publication Dates 2021:
Winter 2020/21 Friday 26 February
Spring 2021 Friday 28 May
Summer 2021 Friday 3 September
Autumn 2021 Friday 26 November
Provisional Quarterly Publication Dates 2022:
Winter 2021/22 Friday 25 February
Spring 2022 Friday 27 May
Summer 2022 Friday 2 September
Autumn 2022 Friday 27 November
European Prime Office Rents Consensus Forecasts
Publication dates 2021:
H1 2021 Friday 14 May
H2 2021 Friday 12 November
Provisional publication dates 2022:
H1 2022 Friday 13 May
H2 2022 Friday 11 November