Pick of the bunch: W/E 20th December 2024

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

Residential Real Estate

Scottish estate agents have outperformed their counterparts across the UK in 2024, completing 54,428 home sales and accounting for 15% of the national total, according to data from GetAgent . The South East followed at 14%, while the North West contributed 11%. Among UK cities, Belfast emerged as the top hotspot with 7,333 transactions, with Edinburgh and Glasgow ranking second and third, respectively. Despite affordability challenges and high mortgage rates, optimism is growing in the UK property market, with agents anticipating a strong start to 2025, driven by robust Q4 activity and a looming Stamp Duty deadline.

Tom Bill , Head of UK Residential Research at Knight Frank , predicts a challenging year ahead for the property market, marked by uncertainty from tax changes, a new US President, and lingering concerns over the Autumn Budget. Rising mortgage rates, reduced government financial flexibility, and the risk of inflation could dent consumer confidence, while April's stamp duty adjustments are expected to distort market activity. Bill foresees modest residential price growth but notes that private sector adaptations, such as transferring housing equity to children, may soften the blow of punitive measures. In contrast, super-prime markets are preparing for changes to non-dom tax rules in 2025, with some buyers already adjusting their property strategies. While these factors will shape the market in 2024, Bill anticipates the full impact of the Budget won’t emerge until late 2025.

Over the past 20 years, housing markets have experienced dramatic changes, from the initial boom driven by rising homeownership to the shift towards institutional investment in private rentals. Early in the century, buoyant house prices fueled the expansion of mortgaged owner-occupation, boosting wealth effects and economic stability. However, the 2007-09 financial crisis put a halt to this, with homeownership rates declining and credit constraints tightening. Fast forward to 2024, and we are in the midst of a housing "supercycle," with house prices continuing to rise. While this is good news for property owners, a major shift has occurred in the rental sector. Corporate landlords, backed by institutional investors and private equity, now dominate, moving away from the amateur buy-to-let model. This trend has sparked concerns about affordability and the concentration of housing ownership in the hands of large corporations, leading to reduced services and increased rents for tenants. Despite the influx of capital into housing, which could help address supply shortages, the impact on affordability and housing equity remains uncertain. Critics argue that this institutional shift may not alleviate housing crises but rather exacerbate them, extracting value from an already strained sector and further entrenching economic inequality.

Contact: Michael Woda, Jessica MacLeod, Mitchell Dring, Bradley Hellier, Michael Cartmill, Ethan Lewis

Property Management

Greystar has agreed to acquire a portfolio of seven Australian student housing properties from Wee Hur Holding and GIC for A$1.6 billion ($1.01 billion), marking its entry into Australia’s purpose-built student accommodation (PBSA) market. The 5,662-bed portfolio, located across key cities including Sydney, Melbourne, Brisbane, Adelaide, and Canberra, expands Greystar’s footprint in the region, boosting its assets under management to $4 billion across Australia, Japan, and China. The company plans to upgrade the properties, aligning them with its global brand, and continues to see strong demand in Australia’s student housing market. Wee Hur, which began assembling the portfolio in 2015, will retain a 13% equity interest and reinvest the proceeds to diversify into new investment areas.

Hospitality technology is transforming hotel operations, with advanced property management systems driving efficiency and personalisation. Key trends for 2025 include meeting the needs of hybrid travellers by offering flexible, tailored stays and addressing staff shortages through automation to streamline operations. Embedded payment systems within cloud-based PMS platforms simplify financial transactions and enhance the guest experience, while automation optimises housekeeping and introduces staff-free check-ins for leaner operations. Additionally, Attribute-Based Selling (ABS) is reshaping upselling by showcasing unique features and amenities to boost revenue. These innovations enable hoteliers to adapt to changing guest expectations, overcome industry challenges, and seize new growth opportunities in the year ahead.

HUD has announced updates to its Operating Cost Adjustment Factors (OCAFs) to help housing providers manage rising property management and insurance costs while maintaining affordable rents for residents. Effective from 11 February 2025, these adjustments, mandated under the Multifamily Assisted Housing Reform and Affordability Act, reflect increases in operational expenses such as energy, labour, and insurance, which have nearly doubled for assisted multifamily properties over the past five years. Complementing these efforts, HUD’s initiatives include its $1.1 billion Green and Resilient Retrofit Programme for energy efficiency and climate resilience, revised insurance deductibles to lower costs, and industry-wide summits to address surging premiums. Public comments on the 2025 OCAF methodology are welcomed via Regulations.gov until 11 January 2025, ensuring transparency and collaboration in tackling these challenges.

Contact: Rose Lock, Emma Bradshaw

Business Support

As the property market evolves, 2025 brings significant changes that business support professionals must navigate to stay ahead. The Renters’ Rights Bill is set to reshape tenancy law, likely becoming law by late 2025. This will require updates to tenancy agreements, streamlined processes for the new eviction framework, and enhanced landlord communication. Additionally, stricter energy efficiency standards will prompt landlords to improve properties to meet EPC rating requirements, increasing demand for compliance tracking and project coordination.??

With stamp duty thresholds decreasing and surcharges rising, property transactions may surge before April 2025, requiring efficient administrative support for conveyancing and documentation. Rental demand will remain strong, but affordability challenges may moderate growth. Business support professionals will play a critical role in balancing operational efficiency with tenant relations, ensuring landlords remain compliant while maintaining profitability in a fast-changing landscape.

Contact: Anuradha Deb, Rose Lock

How are you managing your office operations over the festive season? ?

1. 1?? Limited/skeleton staff (47%)
2. 2?? Fully closed for holidays (27%)
3. 3?? Open as usual (27%)
4. 4?? Hybrid—rotating teams (0%)

Our latest poll reveals that most businesses are opting for limited staff during the festive season, while others are fully closed or operating as usual. This highlights the importance of flexibility and strategic planning to maintain operations or ensure a smooth transition back after the holidays. GKR can help by offering temporary staffing solutions, supporting hybrid team models, or providing tailored recruitment strategies to meet your festive and long-term operational needs. Contact our team to discuss how we can help you!

Built Environment

Despite ongoing challenges from high mortgage rates, elevated home prices, and rising construction costs, U.S. home builders are optimistic about regulatory improvements in 2025, according to the NAHB/Wells Fargo Housing Market Index (HMI). Builder confidence for newly constructed single-family homes remained steady at 46 in December 2024, with expectations for future sales reaching their highest level since April 2022. While interest rates are expected to remain above 6%, anticipated Federal Reserve rate cuts in 2025 have bolstered sentiment. Builders continue to use price reductions and sales incentives to support buyer activity, with regional confidence improving in most areas except the West. This measured optimism highlights a cautious but hopeful outlook for the residential market heading into 2025.

Mr. C Hotels and Residences Corporate Jumeirah, a luxury waterfront development in Dubai, has earned a Gold UL Verified SPIRE Smart Buildings? Rating, becoming the first all-residential building globally to achieve this prestigious recognition. Developed by Alta Real Estate Development in collaboration with the Cipriani brothers, the six-story building impressed with high scores in health and well-being, life and property safety, and connectivity.?The SPIRE Smart Buildings program evaluates properties across six key areas, including cybersecurity, sustainability, and energy efficiency, to ensure optimal performance and occupant satisfaction. This milestone underscores the project’s commitment to combining luxury living with cutting-edge smart building technologies, setting a new benchmark in the residential sector.

Urban greenways, like those in San José, Costa Rica, and Guangzhou, China, are transforming urban mobility by integrating nature into city planning. These green corridors connect parks, waterways, and pedestrian routes to support ecosystem regeneration, active mobility, and community well-being. In Costa Rica, the Rutas Naturbanas project creates 40 km of nature paths along riverbanks, using low-impact methods to enhance biodiversity and prevent floods. Meanwhile, Guangzhou has built over 600 km of greenways, integrating cycling-friendly routes with natural landscaping to reduce emissions and improve connectivity. Such initiatives exemplify how greenways can foster sustainable, nature-positive urban living.?

Contact: Michael Woda , Bradley Hellier

Commercial Real Estate

仲量联行 's "Five Predictions for 2025" outlines a pivotal year for commercial real estate, with the market turning a corner amidst continued economic and geopolitical uncertainties. A key trend is worsening supply shortages, particularly in high-demand assets like offices and industrial spaces in the U.S. and Europe, while Asia Pacific experiences more stable conditions. Early-mover advantages are expected to peak as more capital enters the market, narrowing the bid-ask gap and intensifying competition for prime assets. Corporate confidence in portfolio expansion will rise, driven by shifts toward hybrid work, while aging and unsustainable buildings will face obsolescence risks, creating opportunities for retrofitting and repurposing. Decarbonisation will also accelerate as energy efficiency becomes a critical operational strategy, with retrofits yielding significant cost savings. Recovery, risk mitigation, and resilience will define the year ahead.

A rising trend of businesses opting to purchase properties instead of renting is driving an uptick in commercial property sales, particularly in metropolitan Adelaide. Despite the rising cost of debt, many owner-occupiers find financial benefits in building equity through property ownership rather than paying market rent. Colliers South Australia data reveals that vacant possession (VP) sales, especially in the $1 million to $5 million range, now account for 65% of all commercial deals. In Adelaide's CBD, this figure rises to 72%. Owner-occupiers are focusing on strategic property characteristics, often prioritizing location and suitability over investment returns, contributing to a competitive market for vacant possession properties.

Hong Kong’s commercial property market, struggling amid weak sentiment, is finding new momentum from the education sector as the number of mainland Chinese students surges. Colleges are increasingly leasing office spaces to convert into classrooms, and investors are pouring money into dormitories to meet the growing demand. The education industry now accounts for 12% of new office leasing in the city, becoming the third-largest tenant sector after finance and professional services. With the government’s push to expand international student numbers, demand for educational facilities, office spaces, and student housing is expected to continue boosting the commercial property market.

Contact: Rose Lock

Investment, Finance & Accountancy

?As global interest rates decline, real estate emerges as an attractive investment opportunity, with adjusted valuations and strong potential in sectors tied to long-term megatrends. Alternative property types, such as senior housing, medical offices, self-storage, and data centers, are increasingly appealing due to their reliance on structural shifts rather than economic growth. These sectors benefit from aging populations, healthcare demands, and technological innovation, offering lower maintenance costs and greater resilience compared to traditional real estate. The growing demand for data centers, particularly in Asia Pacific, highlights the transformative potential of this trend, positioning alternative real estate for strong diversification and outperformance in future portfolios.

Starting December 15, 2024, the Canadian government will raise the insured mortgage cap to $1.5 million, up from $1 million, and expand access to 30-year amortizations for first-time buyers and new builds. These changes aim to make homeownership more accessible in high-cost markets like Toronto and Vancouver by lowering down payment requirements—5% on the first $500,000 and 10% on the remainder up to the cap. Experts have hailed the move as a "game changer," reducing entry barriers and offering greater financial flexibility, though the impact will vary by household and region.

Belgium's real estate market is projected to rebound in 2025, with housing prices forecasted to grow by 3%, driven by stabilizing mortgage rates, wage indexation, housing shortages, and legislative changes such as reduced registration fees in Flanders and Wallonia. While affordability remains a concern for many, particularly young buyers, declining interest rates have boosted borrowing capacity, leading to increased transactions and optimism in the market. Energy-efficient homes will continue to see faster price growth, but easing renovation obligations may narrow the gap with less efficient properties.

Contact: Michael Cartmill

In partnership with Druce:

Druce, a name synonymous with luxury real estate since 1822, aims to expand its presence across multiple territories London, partnering exclusively with GKR International - Real Estate Talent Specialists, to bring top-tier talent into the business. Contact our team to discuss your interest in joining Druce's reputable team.

Email: [email protected]

Website: www.gkrinternational.com/clients/druce-careers

Contact: Lee Riley, Grant Kaveney

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