Growth and rental prospects in health care sector
Apart from investment in London, investment in prime properties is offering lucrative returns. Despite Brexit and increase in taxes, the properties bought by international buyers in central London are dominating the property markets in the UK, where international buyers were responsible for making more than half of the key purchases in Q2 2017. Currently, the housing sector in the UK is dominated by private landlords, social landlords, developers, housing association and authorities. The health care sector offers flexible multi operational asset class where extreme shortage of care units has led to rise in rents. Undersupply of health care units raises the need to increase private supply of houses. In Central London, only 3,178 beds and 20,357 retirement housing properties are available, which can satisfy only 10 per cent demand of the growing aging population.
Residential property value is two-times greater than the value of commercial property, and it stands at £5.9 trillion (as per the data represented by Property Industry Alliance 2017). Online mortgage broker Trussle finds the price of house have risen from £2,006 to £211,000 (i.e. 106 times), since the England team won World Cup (1966) but the salaries have increased one- third from £798 to £26,500. Commercial property accounts for 13 per cent – with a value of £883 billion. These non-residential properties include healthcare, hospitals, colleges, schools and other institutions, which are a fraction of total properties, but have a significant function in the property market.
Opportunities in health care properties
Investment increased in first half year of 2018 in UK health care sector where the CBRE reports finds the investment volumes increased to £687 million from £492 million in 2017 and £400m reported in 2016. The care home sector will remain robust in the coming years and performance of such properties was 12 per cent in 2017.
The health care rental market is growing where new purpose built health care units, opportunities funds, and institutional investors are spending on health care. It is believed that these primary care units can provide safe value for money.
Health care industry received investment of more than £1.32bn in 2017 that is 88 per cent more than 10-year average. The health care industry requires consistent flow of investment to fulfil the requirement of people. The key driers of the health care industry are aging population, shortage of care bed and long dated income.
The investment in health care sector attracts foreign investors due to long-dated income where the lease-term can be of 30 years, while, the average lease for commercial properties is 7 years.
REITs and some leading property companies invested up to £741m (in 2017) in healthcare and UK institutions invested £214m. Recently, The UK based investors Primary Health Properties (PHP) bought the Mountmellick Primary Healthcare Centre (located in Co Laois) as part of growth in Republic of Ireland where the requirement for primary health care infrastructure is increasing and secured rental income can be earned through government backed long terms.
Research on care homes find there is substantial opportunity in this sector. The challenges in the sector are rising property price and increasing living costs.
To get some lucrative deals in health care units, visit Hamilton International Estates (www.hamiltoninternationalestates.com).
The health care rental market is growing where new purpose built health care units, opportunities funds, and institutional investors are spending on health care. It is believed that these primary care units can provide safe value for money.
Health care industry received investment of more than £1.32bn in 2017 that is 88 per cent more than 10-year average. The health care industry requires consistent flow of investment to fulfil the requirement of people. The key driers of the health care industry are aging population, shortage of care bed and long dated income.
The investment in health care sector attracts foreign investors due to long-dated income where the lease-term can be of 30 years, while, the average lease for commercial properties is 7 years.
REITs and some leading property companies invested up to £741m (in 2017) in healthcare and UK institutions invested £214m. Recently, The UK based investors Primary Health Properties (PHP) bought the Mountmellick Primary Healthcare Centre (located in Co Laois) as part of growth in Republic of Ireland where the requirement for primary health care infrastructure is increasing and secured rental income can be earned through government backed long terms.
Research on care homes find there is substantial opportunity in this sector. The challenges in the sector are rising property price and increasing living costs.
To get some lucrative deals in health care units, visit Hamilton International Estates (www.hamiltoninternationalestates.com).
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