Investors start to switch from resi to commercial, says Propertymark
Summary
Propertymark reports that some investors are shifting interest from residential buy-to-let into commercial property, driven by rising tax, regulatory and compliance pressures in the residential sector. The article notes that commercial investment is being viewed by some as offering a less restrictive framework, although it comes with higher entry costs and more complex transactions.
Why it matters
Residential property surveyors may see more clients reassessing portfolios, seeking advice on the implications of moving between residential and commercial assets. The trend also reflects ongoing pressure in the private rental sector, which can affect valuation assumptions, investor demand and transaction activity.
Key points
- Propertymark says residential investors are increasingly exploring commercial opportunities.
- Rising tax, regulatory and compliance burdens in residential property are a key driver.
- Commercial property is seen by some investors as having a less restrictive legislative framework.
- Industrial and warehousing remain resilient, while larger offices continue to struggle.
- Investors need guidance on borrowing ratios, tax liabilities and regulatory obligations when switching sectors.
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