With 2019 now well under way, we have had a chance to reflect on where we see the markets going, where investment opportunities might lie and which markets might give us the returns we seek.
As private investors with committed backing we, like many of our peers, have funds to invest. For us though, the priority is on maximising long-term gains. We are also fortunate enough not to have the pressure to invest hanging over us, forcing us in to deals which don’t feel one hundred percent right.
For 2019, we are focussing on three markets: Dublin, Central London and New York.
Dublin:
Much of our investment in recent years has been centred on acquiring and developing Georgian townhouses in central Dublin. We have become experts at adding value to these properties through renovation, change of use and redevelopment but that also means that we understand the margins involved.
Our buildings in Dublin are performing at the top of the market and delivering solid short and long term returns but buying similar assets now would not deliver at the same levels; restricted supply and Brexit-related demand from foreign investors have pushed prices beyond where we see value. Instead we need to look at other more innovative investment options in Dublin and we are currently exploring a few ideas that will take advantage of changing property trends and future growth sectors.
London:
The prime central London residential market is always going to be appealing to investors that want a mix of good short-term income and long-term capital growth. It is also a market that is slowing down and many UK based investors are fleeing the capital to look for better opportunities elsewhere in the regions. We have the cash ready to be able to act on the right deal swiftly and are still very keen to speak to agents, developers and landlords with lot sizes up to £10m, that they want to release for a quick sale.
New York:
It is a very different market place than London and Dublin, but real estate in New York and the surrounding areas presents a variety of opportunities. The economic forecast for the US is strong for this year and this is expected to support further interest rate hikes, which for buyers with minimal borrowing needs is a very positive thing. A slowdown in the development of new-build is benefiting the multifamily (Build to Rent) sector but also creating more demand for high quality renovations, something that we have a strong track record in delivering.