Buy-to-let leads investment demand
Buy-to-let is leading investment demand in 2016, reveals new research from Lead Galaxy.
The lead generation specialist’s analysis of advertising spend over the year to date reveals that residential buy-to-let has generated the biggest response from investors, accounting for 38 per cent of marketing spend. This is the second year in a row that buy-to-let has been the most popular asset class among international investors, despite a number of new law changes impacting the sector.
Commercial property was the second most popular asset class, accounting for 18 per cent of advertising spend in 2016, followed by student accommodation (16 per cent) and hotel rooms (10 per cent). Land plot investments (7 per cent) completed the top five.
Commercial property is the rising star of 2016, with advertising spend surging 276 per cent compared to the same period last year. Interest in off-plan new build property has also risen 18 per cent. Buy-to-let has proven the most resilient big player, though, with spend rising 4 per cent to extend its lead.
“Buy-to-let remains the biggest driver of real estate marketing in 2016,” comments Lead Galaxy CEO Dan Johnson. “The sector has faced a number of headwinds in the last year, with the UK government introducing a stamp duty surcharge on additional property purchases and incrementally removing mortgage interest tax relief from April 2017. Investors are evidently not deterred, though, as the sector has not only remained the biggest driver of activity, but also grown by 4 per cent.
“Buy-to-let’s international appeal is a core part of the asset’s strength, with investors from countries as diverse as the Middle East, Italy, Egypt, Greece, South Africa, USA, Russia and Saudi Arabia all viewing buy-to-let property opportunities advertised by our clients this year.”
“Our research analysed marketing spend from our clients this year, which also indicates asset class appetite for advertisers. Buy-to-let remains a highly marketable product, but a growing number of agents and brokers are turning to the commercial property sector for attractive opportunities. Indeed, commercial property purchases do not carry the same stamp duty charge as residential investments, which makes them more appealing to investors. The office sector, in particular, has seen a rise in activity this year, fuelled by the rapidly increasingly number of co-working spaces around the world.”
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