Property Developers Shifts Focus on Affluent Millennials

09:52

Funding Premium Apartments Instead of Houses


Welcome to the Junaid Iqbal Memon blog. Junaid is a prolific businessman and an experienced property and real estate developer, Junaid has always been in the lookout for exciting investment prospects. Having seen potential in the property market, he founded the Cloud 9 Group in 2014. To date, he does not only have several successful residential developments under his name, he also owns and manages a number of businesses in London and in Dubai. Read on as he shares recent trends and updates in the property market.

Property developers in the UK are shifting their focus on affluent millennials instead of families. More and more build-to-rent investors are opting to fund premium apartments instead of affordable houses. Seeing a chance for income generation, institutional investors these days have made the decision to develop blocks of rental units across the UK that are professionally run in a bid to compete with the part-time landlords that have since traditionally dominated the £1 trillion rental sector in the country.
Junaid Iqbal Memon appartment
While politicians have since welcomed the prospect higher percentage of institutional ownership in the renal market for private properties, there are people that raised concerned over how the developers are likely to turn up premium apartments that are more targeted for the millennials instead of churning out family homes.

Many of these developments are located on London’s outskirts which is not surprising since investors are trying their best to maximise their returns. However, the claims that the build-to-rent scheme is going to become the solution for the housing crisis is considerably overblown. Most of these developments were built as high-quality ones. These are well-serviced blocks and they have the potential of generating really healthy rents. As a result, these blocks are likely going to attract renters that are earning higher instead of people that are in need of living solutions that are more on the affordable side.

Estate agent Savills revealed that the rental prices for build-to-rent blocks are usually above the prices of the wider residential market.  This means that these developments tend to reflect what higher quality properties tend to offer such as running tracks, screen rooms that are cinema-like, as well as gyms. It has also been pointed out that most of these developments that are being constructed are considered to be high-specification and they seem to be aimed at people who are younger instead of those families that have children.

However, there are those who defend this move. For instance, the reason why there may seem to be such a bias towards younger renters may be partly due to the fact that the sector has only just taken off in recent years and they seem to be experiencing the fastest growth in the London area. The sector has helped on the addition of 96,000 homes to the housing stock in the UK. Aside from full completions, there are part-built units that are being included as well. Further growth in the sector is being forecast as more investors are warming up to the potential of the expanding renter pools in the UK as far as income generation goes.

Data concerning the build-to-rent market can be quite a challenge to come by. However, there are many telltale signs that show how more investors are now beginning to look into the possibility of providing not just upmarket apartments, but family homes as well.

Watch the video below to know more.


Know about the recent trends in the UK property market and learn more about Junaid Iqbal Memon on his official site. You can also follow the Junaid Iqbal Memon Facebook page.




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