Pick of the bunch: W/E 14th June 2024

Highlighting some of our latest opportunities across each of our disciplines, alongside global market insights for real estate professionals, weekly.

Residential Real Estate

This week, the residential real estate market in the UK has seen a significant move with Blackstone 's ￡580 million acquisition of 1,750 homes from Vistry Group . This deal underscores a growing trend where private equity firms are increasingly targeting UK residential properties. The attraction lies partly in the country's housing shortage, escalating costs of private landlords, and rising home prices, which collectively create a lucrative investment opportunity. However, this surge in institutional investment has met with criticism from renters concerned about potential declines in housing quality amidst profit-driven ownership changes.

Conversely, in the UAE, the residential property market continues to exhibit robust growth driven by strong demand, solid economic expansion, and substantial foreign interest. In Dubai, residential property prices surged by around 21% annually in Q1 2024, marking a continuation of strong growth seen over recent years. Villa prices rose sharply by 22.08%, while apartment prices also showed significant gains. This bullish trend is supported by record-breaking transaction volumes, reflecting Dubai's status as a highly attractive global investment destination due to its stable economy, robust infrastructure, and supportive regulatory environment.

Looking ahead, the UAE's economic outlook remains optimistic, with expectations of continued growth driven by increased oil production and robust domestic consumption. The International Monetary Fund and Central Bank of The UAE forecast GDP growth rates of around 4% for the current year, further bolstering investor confidence in the country's real estate sector. As both residential and commercial properties in Dubai and Abu Dhabi continue to appreciate, the market dynamics highlight sustained demand and investment potential amidst favourable economic conditions.

Contact: Lee Riley , Bradley Hellier , Michael Cartmill

Property Management

This week, the Saudi Arabian property management software market is witnessing rapid growth, driven by a confluence of factors including government initiatives, increasing adoption of technology, and a burgeoning real estate sector. The market is projected to exceed USD 94.13 million by 2032, reflecting a compound annual growth rate (CAGR) of 9.36% from 2024 to 2032. Cloud-based solutions are particularly gaining traction, with an anticipated 65% of property management companies in Saudi Arabia expected to adopt them by 2025, up from the current 35%.

The Saudi Vision 2030 plan plays a pivotal role in propelling this growth, aiming to diversify the economy away from oil dependency. Initiatives such as the establishment of the SRC and advancements in mortgage laws are fostering a conducive environment for the real estate sector. Moreover, the National Transformation Program | ?????? ?????? ?????? underscores the government's commitment to digitalisation, aiming to elevate the ICT sector's contribution to GDP. This strategic focus is set to further stimulate demand for property management software, aligning with the young and tech-savvy demographics prevalent in Saudi Arabia.

Featured Employer

Contact Rose Lock, Associate Director at GKR International - Real Estate Talent Specialists to discuss this exclusive opportunity within Principia Estate & Asset Management's reputable block management team based in Central London.

Contact: Emma Bradshaw , Rose Lock

Business Support

Meanwhile, in the UK, the property management support sector faces its own set of challenges, navigating legislative reforms impacting rental practices. These include limitations on rent increases and heightened regulatory requirements, underscoring the importance for industry professionals to maintain resilience and professionalism amidst evolving market dynamics. As the landscape continues to evolve, adaptation to regulatory changes and ensuring well-being within the property management community remain critical priorities.

Contact: Anuradha Deb , Emma Smith

What was your biggest challenge during the first 90 days of a new role or new hire?

1. Building new relationships (37%)
2. Adapting to company culture (33%)
3. Learning new software/tools (18%)
4. Meeting performance goals (12%)

The fact that building new relationships emerged as the largest challenge (37%) during the first 90 days of a new role highlights the critical importance of interpersonal connections in the workplace. By focusing on fostering strong relationships early on, GKR can significantly contribute to enhancing the onboarding experience and ensuring new hires feel valued and connected from the start.

Contact our team at GKR International - Real Estate Talent Specialists to discuss how we can help you!

Commercial Real Estate

As we move into the second half of 2024, the commercial real estate landscape presents a mixed but largely positive outlook. Multifamily properties continue to perform well, driven by ongoing demand for affordable and workforce housing, although some markets are experiencing oversupply concerns, particularly in luxury segments. Retail remains resilient, bolstered by the evolution towards smaller, more flexible formats and the continued integration of e-commerce logistics, which fuels demand for industrial properties.

However, challenges persist, particularly in the office sector where vacancies are on the rise. The national office vacancy rate reached a record 19.6% in Q4 2023, reflecting uncertainties around future demand as remote work and flexible office arrangements reshape tenant preferences. Despite this, prime office locations in active markets are expected to outperform, underscoring the importance of strategic asset evaluation and risk management for commercial real estate investors.

The Federal Reserve's cautious approach to interest rate adjustments aims to manage inflation, influencing borrowing costs and investor sentiment. Geopolitical uncertainties, including global conflicts and a record number of elections across 70 countries in 2024, contribute to market volatility but have yet to significantly dampen economic forecasts.

Contact: Michael Woda

Built Environment

As the urgency of the climate crisis intensifies, more companies are committing to sustainability, exemplified by initiatives like the 24/7 Carbon-Free Energy Compact. This commitment is particularly crucial for sectors like data centres, which must match their constant energy demand with locally produced carbon-free energy to meet stringent environmental goals.

Data centres, accounting for 3% of global electricity demand and growing rapidly, face challenges in sourcing sufficient renewable energy. While on-site solar installations can cover a fraction of their needs, the majority must be procured from additional avenues due to scale limitations and the lead times of renewable energy projects.

The built environment, especially commercial and industrial (C&I) buildings such as warehouses, holds significant potential to bridge this gap. With expansive rooftop spaces ideal for solar installations, warehouses could potentially supply up to 60% of data centres' energy demands. This opportunity hinges on aggregating surplus energy from distributed assets, ensuring a steady supply that aligns with the fluctuating demands of data centres.

Contact: Michael Woda , Peter Wallis

Investment, Finance & Accountancy

The European real estate market, particularly in the UK, is emerging as a lucrative investment opportunity due to imbalances in supply and demand. Patron Capital Partners highlights that while demand remains robust, the supply of available assets has dwindled, largely due to limited investment during recent economic downturns.

This scenario is attracting interest from global investors, especially Asians who have accumulated wealth during the pandemic and are now seeking avenues for deployment. Lower taxes on property investments in Europe, compared to the US, further enhance the appeal of European real estate. Japanese investors, in particular, are eyeing residential properties and light industrial assets, which are in short supply and thus in high demand.

The UK stands out as a preferred destination for property investment within Europe, offering a historically stable market with substantial growth potential. Foreign investors are drawn by attractive rental yields, particularly in regions like the North of England, where yields can exceed 7%.

Contact: Lee Riley , Michael Cartmill

GKR News:

Read some of our latest feedback via our Google reviews:

Contact our team at 0207 048 3304 or email us at [email protected] to find out what other opportunities we are recruiting for.

If you are looking for talent for your team, we would love to hear from you.

GKR International offers up to ￡250* cash per successful referral if you know any friends/colleagues/family looking for a new career opportunity within the property sector.