HNW Investors Plan to Significantly Increase Real Estate Investments in Next 12 Months: ASK Partners Research
High net worth investors are showing a strong interest in real estate, with nearly three in five planning to significantly increase their investment allocation to the sector in the next 12 months, according to research by ASK Partners.
The study also revealed that one in five HNW investors are looking to increase their current real estate investment risk tolerance, while 17% plan to decrease it. However, there are challenges ahead for the real estate market, with higher interest rates, changes in political leadership, increased regulation, and changes to the tax system cited as the biggest concerns by investors.
Interestingly, 13% of HNW investors believe that housing should be the number one top priority for an incoming government. They have suggested that the government should focus on alleviating restrictions on conversions and brownfield sites, revising zoning and land use policies, and incentivizing affordable housing to enhance investment in real estate in the UK.
Daniel Austin, CEO and co-founder at ASK Partners, commented on the findings, stating that the positive sentiment towards sectors like life sciences, warehouses & logistics, and co-living reflects the strong investment prospects in these areas. However, he also highlighted the challenges posed by higher interest rates, political changes, increased regulation, and tax adjustments.
Austin emphasized the importance of addressing these issues to overcome planning restrictions, affordability challenges, and the shortage of construction workforce, ultimately strengthening the UK’s real estate market. He also stressed the need for credible long-term plans to address the housing shortage and revive SME housebuilders, boost skilled labor, and reform planning processes.
Overall, the research indicates a positive outlook for real estate investment among HNW investors, but also highlights the need for strategic government intervention to address key challenges and enhance investment opportunities in the sector.