Alternative growth areas for real estate investors
Traditional investment areas, such as commercial property and residential developments, are enhanced by opportunities in future growth markets.
Research conducted by The Intelligence Lab and Knight Frank uncovered several key trends in global real estate investment that are gathering steam in Australia and New Zealand. These include:
Investment in high-end trailer parks gathered speed in Australia and New Zealand before COVID-19 and is proving popular in US and UK markets.
Studies found that this area is set for enhancement in 2021 and beyond, particularly in the US, where investors are seeking an alternative to an affordable weekend getaway.
Usually, highly cash generative and involving low operating costs, mixed-use locations on urban fringes can also serve as “land banks” for future development.
Studies show that environmental, social and governance is an increasingly motivating factor in the property investment sector.
Once seen purely as a food source, farmland is developing as a multi-purpose zone with its potential to provide public services, such as flood mitigation and wellbeing focus.
Regenerative agriculture is a contentious global area of interest, with its claimed ability to sequester carbon to help combat the effects of climate change.
Old office buildings
Despite COVID-19 lockdowns essentially shutting workers out of their office space, record rents were recorded in these periods in the world’s major financial centres.
A shortage of best-in-class office space and development decline in prime land is propelling investment opportunities in office buildings built before 2000.
Refurbishing or repositioning these spaces to new sustainability standards is proving an affordable area for private investors.
Due to the rise of techtainment giants Netflix and Amazon Prime not just streaming others’ content but creating huge volumes of their own, studio space is potentially at a premium.
This is proving to be a dual investment trend, spanning office and industrial assets.
Brands that invest in both digital media and traditional advertising are spearheading growth opportunities.
*The alternative real estate areas outlined here are just the tip of the iceberg for potential investment opportunities. To discuss these and other emerging markets, contact your financial planner, bank or investment manager.