Robust start to the year for UK Multifamily sector
The UK Multifamily sector recorded a total of £771m of investment in Q1 2021, according to provisional data from global real estate advisor, CBRE. Despite being 28% down on Q1 2020, which was the second highest quarterly investment volume for the sector since 2014, the sector has started the year strongly in spite of the restrictions imposed by the third national lockdown.
There were a number of stand-out deals over the course of the quarter, including MGT Investment Management’s £150m forward commitment on a portfolio of units at Battersea Power Station and an £80m forward-funding for the construction of Moda Living’s build-to-rent scheme in Holland Park, Glasgow.
This positive momentum is expected to continue with £1.5bn of deals under offer at the end of Q1 2021.
The market continues to demonstrate its resilience despite the ongoing restrictions. With the UK now emerging from lockdown and the vaccination rollout continuing to prove successful, we are expecting this momentum to continue to build over the course of the year. The strong fundamentals of the sector, particularly the more robust income stream, mean demand remains high and we are anticipating more equity to target UK Multifamily assets than Central London offices over the course of the year.