Pick of the bunch: W/E 6th September 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 in The Netherlands, the National Mortgage Guarantee (NHG) highlighted the growing interest among young home seekers, particularly those aged 20 to 34, in flexible homes built on land with temporary residential designations. These homes, which cost around €180,000 compared to the average of €450,000 for a regular home, offer a potential solution for first-time buyers frustrated by the lack of affordable housing. However, financing options are limited due to uncertainties surrounding resale and land tenure. The NHG is working with the Ministry of Housing and Spatial Planning, lenders, housing corporations, and municipalities to explore solutions. A pilot program in one or two municipalities may begin by the end of 2024 or early 2025.

In the U.S., Arizona has emerged as a major destination for foreign real estate investment, particularly from Canadian buyers. According to the National Association of REALTORS? (NAR) 2024 Profile of International Transactions in U.S. Residential Real Estate, 60% of Arizona’s foreign buyers are Canadians. Arizona ranked as the fourth most popular U.S. state for foreign real estate transactions between April 2023 and March 2024, with 5% of all foreign buyers purchasing homes there. This trend highlights Arizona’s increasing appeal as a real estate investment hub, driven by favourable market conditions and strong demand from international buyers.

In Scotland, DJ Alexander , a leading lettings and estate agency, reported that house prices rose by ￡5,368 between July 2023 and June 2024, with average prices increasing from ￡187,122 to ￡192,488. Midlothian saw the highest increase of ￡17,724, followed by Edinburgh (￡14,315) and Stirling (￡13,927). In contrast, rural areas like Perth and Kinross, Argyll and Bute, and Aberdeen experienced declines, with Aberdeen's prices falling by ￡1,794. Despite high interest rates and economic concerns, CEO David Alexander noted that Scotland's housing market remains resilient, outperforming England and Wales, where prices rose by ￡4,707 on average. Urban areas, particularly in Edinburgh, Glasgow, and the central belt, continue to drive demand and price growth.

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

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. Read the full article here.

Email: [email protected]

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

Contact: Lee Riley , Grant Kaveney

Property Management

In the UK, Manchester-based Xenia Estates is targeting 20% growth over the next three years. Specialising in residential, mixed-use, and student accommodation property management, Xenia is focusing on expanding its national footprint, particularly in the North West. The company has appointed Richard H. to lead its growth strategy, leveraging his commercial expertise to drive high-end developments and strengthen its portfolio. Director Gemma Latham noted Xenia’s significant investments in brand growth, positioning the firm for long-term success in the property management sector.

In Korea, 戴德梁行 is expanding its property management services in the technology and life sciences sectors, capitalising on massive investments by conglomerates like 三星电子 and SK hynix . The firm sees rising demand for real estate in semiconductor mega-clusters near Seoul, where office, manufacturing, and research facilities are booming. In addition to industrial spaces, Cushman & Wakefield sees growth in biopharmaceutical facilities, with companies like Samsung Biologics and LOTTE BIOLOGICS leading innovation in cities like Songdo and Cheongju.

Featured Employer:

Rose Lock , Associate Director at GKR International - Real Estate Talent Specialists has been retained by The Pedder Group to lead their search for a customer-focused Property Manager to manage a portfolio of residential properties within their award-winning team in south east London. Pedder highly values its employees and has recently been recognised as a Sunday Times Best Place to Work 2024!

Contact: Rose Lock , Emma Bradshaw

Business Support

Property industry supplier iamproperty reports that around 670,000 students will seek private rental properties this academic year, requiring rental agents to manage a surge in admin tasks, such as key handovers and property inductions. Co-founder Ben Ridgway highlights that many first-time renters may struggle with basic maintenance, such as ventilating rooms to prevent damp or monitoring boiler pressure for heating issues. By providing clear guidance on property care, agents can improve the student experience and reduce emergency maintenance requests throughout the year.

Contact: Anuradha Deb , Peter Wallis

If given the choice to meet the team before proceeding with a job offer, would this influence your decision? ??

1. Yes, it would influence (47%)
2. Yes, but not a deal-breaker (26%)
3. Maybe, depending on the role (23%)
4. No, it wouldn’t influence (5%)

At GKR International - Real Estate Talent Specialists , we understand how important team dynamics and company culture are when considering a new role. The opportunity to meet the team before accepting a job offer can often provide valuable insight into the workplace environment, collaboration styles, and overall fit, which may influence your final decision.

With 47% of professionals saying it would influence their decision and 26% considering it important though not a deal-breaker, we can support you by facilitating introductions between candidates and key team members during the hiring process. This way, you can make a fully informed decision. Whether you're looking for your next opportunity or hiring top talent, GKR is here to assist at every step of the process!

Commercial Real Estate

Deal-making in the commercial property sector is gaining momentum, with Starwood Capital Group announcing a ￡673.5 million acquisition of the Balanced Commercial Property Trust LTD , which includes prime assets in central London and across the UK. On the same day, SEGRO plc reached a deal to acquire warehouse landlord Tritax EuroBox plc in an all-share takeover worth ￡553 million, aimed at capitalizing on demand for logistics assets fuelled by e-commerce growth. These deals come after a two-year slump in European commercial property transactions, which are now recovering as investors seize on discounted opportunities.

A report from Knight Frank highlights the urgent need for retrofitting commercial properties to avoid obsolescence, driven by increasingly stringent sustainability regulations. The report reveals that 70% of commercial property floor space in the UK is rated EPC C or below, putting it at risk of becoming unlettable if new standards are implemented. Flora Harley , Knight Frank ’s head of ESG research, called for a “retrofit revolution” to accelerate energy efficiency improvements and future-proof assets against rising regulatory and financial risks.

In Germany, GARBE Industrial Real Estate GmbH has partnered with BlackRock to acquire a 200,000sqm brownfield site in Lower Saxony. The joint venture plans to develop a 70,000sqm logistics property on the site, with completion expected by 2026. The project is part of a broader strategy to modernise existing properties and construct new, sustainable commercial real estate across Europe, with a focus on Germany and France. Garbe expects high demand for the site, given its strategic location and potential for large-scale logistics uses.

Contact: Michael Woda

Built Environment

The new Government has set an ambitious goal of constructing 1.5 million homes over the next five years, but developers caution that solely relying on brownfield sites will not meet the increasing demand. To address this, the Government is revising the National Planning Policy Framework (NPPF) and consulting on the potential release of Green Belt land, including introducing a new “Grey Belt” designation. This inquiry will examine what Grey Belt land entails, its role in achieving housing targets, and how sustainable development can be ensured. The committee will also evaluate the proposed “golden rules” for land release, affordable housing requirements, and infrastructure needs to support successful Grey Belt developments.

Melbourne has won the bid to host the World Sustainable Built Environment Conference (WSBE) in 2026, one of the most significant global conferences focusing on sustainability in the built environment. Over 1,000 delegates will gather at the Melbourne Convention and Exhibition Centre to discuss innovations and challenges in sustainable development. Spearheaded by the Melbourne Convention Bureau , 澳大利亚皇家墨尔本理工大学 , and backed by the Victorian Government , the event highlights Melbourne’s commitment to sustainability and its role as a leader in environmentally sustainable design.

In Singapore, the government has launched a task force co-led by Minister Indranee Rajah and SJ Group Chairman Chaly Mah to boost the architectural and engineering consultancy fields in the built environment (BE) sector. The task force aims to improve the sector’s branding, attract talent, and promote sustainable practices. In addition, updates to the Standard Consultancy Agreement and the Building and Construction Authority’s refreshed Industry Digital Plan will help align the sector with Singapore’s broader sustainability goals.

Singapore is also pushing for decarbonisation in the built environment through a six-month consultancy study. The study will explore innovative energy-efficient strategies for high-rise offices, hotels, and mixed-use developments. It aligns with the targets of the Singapore Green Building Masterplan 2030, which aims to green 80% of the country's buildings and ensure new developments achieve super low energy standards by 2030.

Contact: Peter Wallis , Grant Kaveney

Investment, Finance & Accountancy

The real estate market in India is projected to continue its strong performance into FY25, building on a robust FY24. The sector's vitality is underscored by shifting demands and evolving work patterns, with developers anticipating another successful year. Key players, including major real estate firms and investment groups, are optimistic about growth, driven by the increasing interest from both domestic and international investors.

Remote working trends are reshaping real estate investments in India. Employees' preference for flexible work arrangements has led to a surge in demand for larger homes with dedicated office spaces, high-speed internet, and proximity to green areas. Notable companies in the sector, such as Knight Frank India and Savills India , highlight the growing appeal of suburban and rural properties as more individuals seek affordable and spacious living environments outside congested urban centre's.

In Romania, the real estate market has seen a dramatic increase in transactions, reaching €419 million in the first half of 2024. Noteworthy transactions include Globalworth Poland ’s sale of an industrial portfolio to CTP for approximately €168 million, and WDP - Warehouses with brains acquisition of Expo Market Doraly Mall for around €90 million. The office sector also saw significant activity with the sale of The Landmark office park and the myhive Victoriei office building, reinforcing investor confidence. As the market continues to grow, driven by ESG criteria and evolving investment strategies, Romania is on track to achieve €1 billion in transactions by the end of the year.

Contact: Mitchell Dring

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