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Institutional residential investment tipped to rise in 2024

Institutional investors are increasingly recognising their crucial role in meeting residential property building targets and plan to boost funding levels, it’s being claimed.

A study by Downing LLP of investors working for private sector and public sector pension funds, family offices and insurance asset managers found that 22 per cent forecast a ‘dramatic increase’ in the level of funding institutional investors provide for UK residential property between now and 2028. Some 72 per cent forecast a slight increase.

Mass market “for sale” residential housing is the property type seen as most likely to attract institutional money as it is regarded as the best investment opportunity in terms of returns, the study found.

Around 60 per cent identified mass market residential housing as the most attractive investment opportunity followed by 27 per cent who said affordable housing. Twelve per cent highlighted single family rental properties while three per cent chose later living housing and two per cent multifamily rental property.

A spokesperson for Downing LLP says: “Institutional investors are aware of their significant role in assisting the UK to reach its targets for residential property development, and they are reinforcing this recognition with plans to increase their funding in this area.

"The focus of these investors on mass market residential housing aligns with Downing's experience. We have observed a notable uptick in institutional investment in this sector compared to last year and expect this upward trend to continue.”


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