High Costs

Mary-Anne writes for Property Week about supply-chain shocks, development risk and the added emphasis on operational strategies. Soaring inflation has led many funders to reconsider taking on development risk, as key construction materials have hit sky-high prices because of pandemic-induced supply chain shocks. However, for institutional investors wanting to access UK real estate living sectors, a lack of tradeable stabilised portfolios in sectors such as build-to-rent (BTR) and co-living is limiting investment opportunities, and so moving up the risk curve is a necessity. Institutions that can find and build relationships with seasoned development partners, with proven track records of delivery, will weather the inflationary storm and still make strong returns.

Mary-Anne Bowring: High costs put the onus on ops