Which sectors and locations offer opportunities to diversify?

New sectors and locations attract capital

What if alternative investments and locations could mitigate risk and drive greater long-term growth? 

There is currently US$1.5 trillion of new capital targeting global real estate from institutional investors, private equity and emerging new sources, which will support demand for UK property assets as capital-rich investors chase yield. 

While the traditional sectors such as offices, logistics, residential and retail stand to benefit from this influx of capital, emerging property sectors are growing fast, particularly living, logistics, life sciences, data centres and self-storage. These alternative investments offer a different risk and return profile enabling investors to hedge against and even outperform traditional asset returns.

Reasons to diversify

End-users drive demand

UK cities are bouncing back from the impact of the pandemic with offices, shops and logistics seeing a surge in activity. This is largely being driven by demand among the younger population, who are disproportionately based in the UK’s urban areas.

New subsectors attract capital

Built-to-Rent is expected to remain a standout performer in the living sub-sector with student housing, healthcare, co-living and residential attracting a greater number of investors who see value in the full lifecycle of accommodation.

Regional cities rise in importance

Cities in the North of England and the Midlands can expect a boost from the UK government’s infrastructure investment programme known as ‘Levelling Up’, which has promised £4.2 billion in funding for transport in major cities outside of London.

Let's shape the future of real estate

Whatever your portfolio size or position it’s time to get a new perspective.

Investors need to reposition, diversify and repurpose

Investor Perspectives

Reposition, diversify and repurpose your assets and portfolios.

Traditional investment approaches are being challenged and investors need new strategies to drive returns and reduce risk.

Reposition

Recalibrate your asset and capital strategies.

Investment and capital strategies suited to the pre-pandemic landscape may no longer be profitable.

Repurpose

Build resilience to withstand future unknowns.

Investors will repurpose existing assets to build resilience across their portfolio and drive performance