Real Estate October 2019
Our update this month provides an overview of some of our existing projects in the residential/PRS, student accommodation and hospitality sectors, as well as looking at new projects in progress in Galway. We also focus on the emerging trends in Real Estate.
Pádraig Owens is a Real Estate professional and co-founder of Elkstone
ELKSTONE REAL ESTATE MARKET OVERVIEW
We are currently installing modular pods in our 29 apartment PRS development in Islandbridge, with delivery of finished units expected next month.
We will submit an SHD planning application for a 125 unit residential Build to Rent development in Whitehall, Dublin next week and will submit a further application for a residential development in Galway in the coming weeks. We are also in the process of acquiring a number of residential sites in both Dublin and Galway.
After a busy summer, we’ve opened our doors for the academic year in Copley Court, welcoming 265 students to the premises. We have been selected as preferred bidder for an existing student property in Galway, which we expect to finalise over the coming weeks.
We will also co-develop a large student development in Belfast with a local promoter.
The sale process for our 71 bed aparthotel site in Christchurch has concluded and we are working with a preferred bidder to complete the sale of the property, which will conclude in the coming weeks.
We have also been selected as preferred bidder for an interesting value-add office opportunity in Galway, which we expect to purchase in the coming weeks. Details to follow.
We are in the process of purchasing a large and prominent existing retail premises in Galway city. Details to follow.
Focus: Emerging Trends
This week the Urban Land Institute and PwC released their annual publication, “Emerging Trends in Real Estate 2020”. The report is US focused but is a good indicator of global developments for the coming year. It forecasts a number of interesting developments, some of which are summarised below.
- While real estate economists are moderating their view on prospects for the US economy, real estate markets are forecasted to remain steady and start to grow again 2021.
- Multi-family and single family housing are favoured as an asset class, as are office and hotels, with the retail sector continuing to struggle.
- As a sector multi-family housing remains strong, but affordability is considered to be a potential issue. As a result, co-living once again features prominently as a potential solution to the issue of affordability. Co-living has traditionally been targeted at younger generations only, but the report references its relevance to older generations.
- Fashionable, hipster locations have traditionally been confined to urban areas, but the report points to the emergence of suburban locations in this regard. Good transport links are the key to suburban areas unlocking this potential.
- The emergence of ESG (environmental, social and governance) will spread to the real estate sector. The Millennial influence on institutional investors is driving this trend for more environmentally and socially conscious business practices.
- Finally Proptech will continue to make it’s mark in the sector in the coming year. The property sector has been slow to adapt to disruption, but is now advancing at a rapid rate.
Real Estate Article
The Urban Land Institute “Emerging Trends in Real Estate” full report is attached.