Build to rent: when a new business changes real estate
Have you ever heard of the ‘build to rent‘ ’formula? This is a building choice that involves the construction of buildings, specifically for build, dedicated to the location.
Analyzing this phenomenon is important for our sector, as it allows us to better understand what the market needs are and above all how the needs of potential buyers are evolving.
This metamorphosis seems to depend on multiple factors. First of all, the well-established advent of a new category of investors: the Millennials. From ever more particular demands, young people prefer to move towards properties that do not limit them. Indeed, the purchase of a property would be expensive and demanding under many fronts. Subscribing to a lease instead allows greater flexibility.
But it's not just the Millennials who are the protagonists of this trend reversal. In fact, we recall that, due to the economic crisis, few people are ever getting involved in signing a contract of sale.
According to the main data reported by the latest analysis, the growth of this sector has reached exponential levels. Especially in the United Kingdom. 20% of properties in London (around 60,000 units) are dedicated to rent. A really high percentage.
According to the economists of the sector, however, the build to rent will not be a real solution to revive the economy of the various countries. But the potential of this program lies in the ability to select greater housing diversity with improved construction standards and much safer housing management.
So what are the potential benefits? For the owner there is a direct long-term involvement. In fact, the latter is encouraged to achieve a better quality of the same building, to make it more attractive to the potential buyer.
However, we remind you that the build to rent is a long-term investment, despite being more flexible than a purchase contract.
This allows this model to be less tied to social and economic changes.
However, the new sector has upset the entire balance in the real estate and construction markets. A real escape from the crisis that hit the real estate, where, for a long time, it was not possible to be particularly active.
So, briefly, in the pros of the build-to-rent we find:
- Increased supply of housing
- Greater range of choice
- Repopulation of urban centers
- More professional management
- Adherence to the multiple needs of potential buyers
In contrast instead:
- Market dedicated (according to economists) only to a rich portion of society
- Properties more expensive than the standards
- Consistency of other individuals that may not be in line with the lifestyle of many
What to say, it seems that the build to rent has marked a turning point in the real estate market. For the next real estate news, all you have to do is stay updated on our portal!
Analyzing this phenomenon is important for our sector, as it allows us to better understand what the market needs are and above all how the needs of potential buyers are evolving.
This metamorphosis seems to depend on multiple factors. First of all, the well-established advent of a new category of investors: the Millennials. From ever more particular demands, young people prefer to move towards properties that do not limit them. Indeed, the purchase of a property would be expensive and demanding under many fronts. Subscribing to a lease instead allows greater flexibility.
But it's not just the Millennials who are the protagonists of this trend reversal. In fact, we recall that, due to the economic crisis, few people are ever getting involved in signing a contract of sale.
According to the main data reported by the latest analysis, the growth of this sector has reached exponential levels. Especially in the United Kingdom. 20% of properties in London (around 60,000 units) are dedicated to rent. A really high percentage.
According to the economists of the sector, however, the build to rent will not be a real solution to revive the economy of the various countries. But the potential of this program lies in the ability to select greater housing diversity with improved construction standards and much safer housing management.
So what are the potential benefits? For the owner there is a direct long-term involvement. In fact, the latter is encouraged to achieve a better quality of the same building, to make it more attractive to the potential buyer.
However, we remind you that the build to rent is a long-term investment, despite being more flexible than a purchase contract.
This allows this model to be less tied to social and economic changes.
However, the new sector has upset the entire balance in the real estate and construction markets. A real escape from the crisis that hit the real estate, where, for a long time, it was not possible to be particularly active.
So, briefly, in the pros of the build-to-rent we find:
- Increased supply of housing
- Greater range of choice
- Repopulation of urban centers
- More professional management
- Adherence to the multiple needs of potential buyers
In contrast instead:
- Market dedicated (according to economists) only to a rich portion of society
- Properties more expensive than the standards
- Consistency of other individuals that may not be in line with the lifestyle of many
What to say, it seems that the build to rent has marked a turning point in the real estate market. For the next real estate news, all you have to do is stay updated on our portal!
