Swimming pool, REalyse

Of the 380 local authorities in the UK, we found that 220 local authorities had a new build premium for rental properties. Could this be down to the additional facilities offered by BTR/PRS developments? Gav crunches the numbers on operating profits and uses the REalyse platform to investigate what’s behind the data.

The Real Value Additional Facilities Add to Build-to-Rent Developments

In March’s Market Mover we looked at how there was not a significant difference on rents for new build properties compared to the secondary market, not accounting for amenities or specific features. But what happens if we take into account such additional facilities?

Using the REalyse platform to research this led Gav to the valuable conclusion that BTR/PRS premiums are driven by the amenities and facilities that are offered by particular sites. As such, the rental premiums are actually the result of different, but integrated, business operations – such as having an in-house gym, pool and cinema as part of the same development.

With brand recognition a relatively new phenomenon in the real estate sector, does this emerging rental market indicate a move towards BTR developments marketing themselves akin to lifestyle brands? Should property developers and investors alike be taking note?

REalyse’s CEO and Founder, Gavriel Merkado, does a deep-dive analysis on key BTR areas in London to crunch the numbers and investigate the trend. Download the report to find out whether it is indeed cost effective for a real estate management company to run other business lines alongside their own developments.

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