Every industry is susceptible to changing trends and real estate is no different. As we move through 2024, politics, economics, and the global stage have shaped the real estate industry for better and for worse. In response, different trends have emerged to meet these challenges, from sustainability and technology to buying trends and tenant demand.
So, what are these trends? Here’s a property investment guide on some of the biggest trends we’re seeing in the UK real estate industry today. Looking at established to emerging trends, we’ll take a quick look at what’s dominating the industry and how it affects different stages of the property chain, from development to investment to renting and selling.
The 7 Biggest Trends in Real Estate in 2024:
Sustainability
As we look to move towards a greener future, sustainability has become less of a buzzword and more of a pressing requirement in all industries – the UK real estate investment also being one of them. Everyone in the property investment chain has become involved in sustainability to some degree. Developers are facing more pressure from governments to adopt greener practices. It is expected that the UK’s new Labour government will bring more of an environmental drive to the property sector, with developers having to focus more on making energy-efficient buildings and adopting greener construction practices.
Augmented Reality and Virtual Reality
The future of real estate is here with augmented reality and virtual reality becoming entwined with the industry. One of the key ways this has manifested is through using VR and AR to orchestrate property tours. VR tours can offer a comprehensive, 360 view of what a property could look like before it is finished, helping those investing in UK off-plan property understand what it is they’re buying. AR overlays digital information into reality, allowing buyers to view additional information about a property as they walk around. It is a highly accessible way for people to access a property without actually being there, as they can view the property via a VR headset, their phone, or even their desktop. These tours allow for highly in-depth inspection of the property, with viewers able to zoom in and inspect every single corner. VR tours are also helpful for people in different time zones who want to view a property but can’t align times with property agencies to perform a video call. While AR tours require a person to be physically present at a property, it adds an exciting new dimension to property touring.
Remote Work
While remote work or “WFH” gripped the nation for a good while during and after the height of COVID-19, more and more businesses are beginning to signal a return to the office, signalling the end of the “new normal”. Initially, renters (and, indeed, homebuyers) left cities to either return home or move to places that had more space – having a garden became a form of social currency. Now, with this return to work, we can predict more of a return to city centres as well, with renters wanting a place that is within a commutable distance from their office.
Off-Plan Property
The property sector is currently enjoying a much-needed boost from the “build-to-rent” projects that are happening across the UK. Build-to-rent buildings can also be understood as “off-plan property” – i.e. when a property is sold to investors before it is built and still in the planning or development stage.
UK New build properties have become a lucrative source of investment for established investors and first-time buyers alike. This year, 37% of buyers across the UK chose to purchase a UK off-plan property – an increase from 35% in 2020. 67% of these purchases were made by first-time buyers who want to tap into off-plan advantages. As we move throughout 2024 and 2025, we can assume off-plan property will continue to be a popular investment, especially as it helps to meet the ever-growing demand for living space in the UK.
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Tech Usage
Technological advancements have streamlined a lot of aspects of the real estate business. Aside from virtual tours as we talked about above, blockchain and AI property management tools have been co-opted by almost all industries, helping for more secure transactions and to communicate better with clients and tenants. As technology continues to advance, we can expect to see more enhancements and improvements in marketing, management, and customer relations in the property sphere.
Old Buildings
While this particular trend mostly falls under the “sustainability” category, old buildings are worth their own mention. There is an increasing trend of developers purchasing old buildings and giving them new life by turning them into flats. It is big on the sustainability front as it is making use of structures that are already there and breathing new life into them.
Health and Wellness
The nation has become more and more health conscious in recent years, with more people than ever before adopting healthy habits into their lifestyles – roughly a third of the UK over the age of 18 regularly work out each week. In addition to this, wellness has become more than a buzzword and has become an integral part of people’s lives. As such, renters living in cities are looking towards multi-use apartments that promote health and wellness. This means renters are more attracted to apartments that also contain gyms, pools, saunas, and even wellness classes, such as yoga and meditation sessions. Investors should look for properties that come with these amenities as they can set their properties apart on listings and stand out to potential high-earning, high-value renters.
Summary
We are a UK property agency and investment firm based in London, Leeds, and Manchester. Our company services multiple cities across England, liaising with the UK’s best developers to bring investors the best deals for premium properties on the market. We are a close-knit team of experts with years of experience, and we can provide insightful guidance in helping you achieve your investment goals.
We provide expert advice on how to secure sleek and quality homes across England, helping investors unlock their potential. We’ve tapped into a quickly changing market and can help you access some of the hottest developments in fast-growing cities. We can manage the legal and financial aspects, providing peace of mind at a time when you need to focus on what matters – your investments. Book a call with us today to find out more about our services.
