The New Era of Residential: Investment Trends and Insights

It feels like Residential is dominating every conversation as the sector of interest right now. 

But it’s more nuanced than housing becoming a money magnet. 

I’ve often shared thoughts on the shift to a more professional housing market, from private landlords selling up to institutional investors stepping in. 

While these segments seem very different, they’re increasingly shaping the same story. 

Here are some insights on the wave of capital flowing into living from recent events I've been at: 

1. Quality:

At a BNP Paribas Real Estate breakfast, Anne Breen, Head of Real Estate at Abrdn, highlighted how quality is now a key driver of valuations. It’s no longer just about the sector story; even in the resi market, the focus is shifting to better assets. 

2. The end of microcaps?

The CEO of LondonMetric Property PLC (LMP), forecast the “death of listed microcaps” (anything worth below £500m). He argued that these companies often serve asset managers more than shareholders, suggesting they’re unlikely to achieve NAV again. 👀 

3. Economic insecurity and rental demand:

At a Cambridge University Land Society (CULS) University Land Society event, Professor Guy Standing shared striking stats on “The Precariat”—50% of the global population living in chronic insecurity. He made a strong case for a basic income, which provides people with security, time to learn, and space to grow. From a real estate perspective, these dynamics underpin global housing shortages and rising rental demand. 

4. Placemaking and rural development:

I had the privilege of joining Farrer & Co for a Chatham House Rules dinner on placemaking and rural development. Discussions with thought leaders like Ben Gummer (GummerLeathes) and Anthony Downs (Gascoyne Estates) underscored the importance of suitable long term government funding and infrastructure to create thriving, sustainable communities. 

The other day I was at a dinner and someone told me that ‘ESG is now a dirty word’. Whatever your view (some say it's an acronym!), we undeniably need to balance financial returns with social and environmental outcomes.

I am planning to write a piece on where institutional capital coming into Living is going, soon so please get in touch if you have a view!

Email: anna@greenresi.com

Connect with me on LinkedIn: https://www.linkedin.com/in/annaclareharper/