Where Next for Real Estate? The What, Who, How and Why of Investable Real Estate - December 2024

The UK investable real estate sector is undergoing fundamental change. Fundamental questions therefore need to be asked – what do we mean by commercial real estate? Where does real estate sit with infrastructure and broader private markets? Why invest in the real estate market now? What are the sources of capital and the most effective structures to access the market? The provision of data and skills required for those entering the profession, in all of its various forms, is in a state of flux. This paper gives a considered view on many of these big questions. It used a qualitative research approach generating primary data through semi-structured interviews across a range of senior real estate professionals, allowing for deeper reflection than a standard market update provides. The findings reflect sentiment in the aftermath of global elections in 2024, recent surge in inflation and move towards more restrictive trade practices. The paper assesses where there are opportunities for investors at the present time with a particular focus on the UK. It’s a mixed picture with a highly segmented market presenting opportunities for inventive and effective asset management strategies including retro-fitting and repurposing to take advantage of demand that does exist. This changes the requirements in terms of data provision and required skills for entering the profession, particularly when AI on people and processes is considered. This paper summarises how things stood at the end of 2024 and highlights opportunities for investors and individuals at this time.