Pick of the bunch: W/E 6th December 2024

Highlighting a selection of our latest opportunities across each of our disciplines, alongside global market insights for real estate professionals, weekly.

Residential Real Estate

THE LOMOND GROUP has acquired London-based Kinleigh Folkard & Hayward (KFH), a renowned sales and lettings agency, in a major move that adds 60 branches and nearly 14,000 properties under management to its portfolio. KFH's strong track record in lettings and block management, built over three decades, made it a valuable asset. Lomond Group now plans to combine KFH with Chase Evans, acquired earlier this year, and continue its strategy of consolidating London letting agencies to gain economies of scale. This rapid acquisition spree signals a strong belief in the stability and growth potential of the UK lettings market, accelerating industry consolidation, which could be largely completed within the next five years. As consolidation continues, business owners should carefully plan their exits, with a competitive tender process being the most effective way to maximise sale terms.

Dubai is cementing its status as a global leader in branded real estate, with more than 140 premium projects anticipated by 2031. Developers like Emaar, DAMAC Properties, and Binghatti are collaborating with prestigious brands to create luxury residences that combine high-end living with iconic names in fashion, jewellery, and hospitality. This trend includes standout projects like Burj Binghatti, billed as the world's tallest residential tower, and the sustainability-focused Wasl Tower. The surge in branded developments underscores the need for recruitment in roles like luxury sales consultants, marketing experts with high-net-worth clientele experience, and project managers adept at delivering ultra-luxury properties

Realtor.com predicts that home sale prices in the U.S. will increase by 3.7% in 2025, equating to a $15,000 rise in the median sales price. This increase is expected to influence buyer behaviour, potentially pushing homebuyers to explore more affordable areas, especially in the South. Meanwhile, mortgage rates are expected to remain above 6%, with a slight decline to around 6.2% by the end of 2025, continuing a trend of high rates compared to the historical lows of 2021. Rent prices are expected to see minimal change, with a slight drop of 0.1% nationwide. However, a boost in new home construction, particularly in the South, will provide more options for potential buyers, with new housing starts projected to rise by 13.8% in 2025. This increase in inventory could lead to higher for-sale listings, benefiting buyers with more options and opportunities for better deals

Featured Employer

GKR International - Real Estate Talent Specialists has been retained by Bridges Properties to recruit an experienced Sales Valuer to join their market-leading team working across the local, West Lothian markets within Scotland. Contact Michael Woda to find out more about this exciting opportunity!

Contact: Michael Woda, Jessica MacLeod, Mitchell Dring, Bradley Hellier, Michael Cartmill, Ethan Lewis

Property Management

CBRE has appointed Brittany Hurley as its new Global Head of Customer and Tenant Experience (CX/TX) for Property Management. Based in Chicago, Hurley will oversee the Host from CBRE product suite, which integrates People, Place, and Digital solutions in collaboration with leading tenant experience partners like Industrious, VTS, and New Stand. Her role involves enhancing customer and tenant experience programming across CBRE's global property portfolio. Hurley brings extensive experience from her previous roles at New Stand, CIM Group, WeWork, and VTS, where she contributed to international growth. This strategic appointment aims to elevate CBRE's service delivery and improve client satisfaction across its managed properties.

Macfarlanes' recent report highlights the growing £1 trillion opportunity within the UK's operational real estate (OpRE) sector, particularly in areas like property management and build-to-rent (BTR). This burgeoning market is gaining traction due to the increasing demand for stable, income-generating assets, especially from institutional investors. Companies such as Legal & General, Greystar, and LaSalle Investment Management are leading the charge in the BTR and OpRE sectors, capitalising on the demand for long-term rental properties. Property management professionals are becoming essential in maximising returns through efficient operations, tenant engagement, and value-added services. With the sector expected to continue growing, opportunities for property managers are set to expand, making it an exciting time for recruitment in this area.

Contact: Rose Lock, Emma Bradshaw

Business Support

France's new law targeting short-term holiday rentals, including properties on platforms like Airbnb, addresses the growing shortage of affordable housing by imposing tighter controls on seasonal lets. Starting January 1, 2025, any property rented on a short-term basis must be registered with local authorities and provide proof of its primary residence status if applicable. The law also mandates energy performance standards for rentals, with new furnished tourist accommodations requiring a minimum energy rating of D by 2034. Additionally, tax incentives for short-term rentals will be reduced, aligning them with long-term residential rental allowances, and the number of days a primary residence can be rented out annually will be capped at 90 days. Local authorities will also gain more power to regulate seasonal rentals, with certain areas like Paris planning to restrict new holiday lets in popular neighborhoods.

Dwelly, an artificial intelligence (AI)-driven property management and letting marketplace, has significantly expanded its reach in the UK property sector by acquiring Gallant Richardson, a well-regarded agency based in Colchester, Essex. This acquisition adds 450 properties to Dwelly's portfolio and follows their earlier purchase of Lime Property in Hull, marking a strategic push into the property market to integrate advanced AI solutions. The company aims to modernise traditionally run independent agencies while maintaining their local brand identity. Gallant Richardson, founded in 1993, is deeply embedded in Essex's property market, making it a significant addition to Dwelly's ambitions of streamlining operations such as tenant applications and property management tasks through AI automation.

Contact: Emma Bradshaw, Peter Wallis

What’s the biggest challenge when hiring top talent in the property sector? 🎯

1. Retaining top talent (47%)

2. Finding skilled candidates (29%)

3. Balancing hiring with workload (12%)

4. Building a future talent pool (12%)

Hiring top talent in the property sector is about more than just finding the right candidates—it's about keeping them engaged and thriving within your business. With 47% of respondents citing retention as the biggest challenge, it's clear that companies need to focus on creating an environment where employees can grow, succeed, and feel valued. At GKR, we know this starts with finding the right fit. With our tailored approach to recruitment, we don’t just match skills—we align ambitions, culture, and career aspirations. Our goal is to help you build teams that stay for the long haul.

If retention, skills gaps, or future talent pipelines are challenges for your team, let’s start the conversation. Reach out to see how we can help secure and keep top talent in the property sector!

Built Environment

The passage of the Treasury Laws Amendment (Build to Rent) Bill 2024 marks a significant step in addressing Australia's housing challenges, with a focus on delivering 80,000 new rental homes over the next decade. The bill, which passed through Parliament on November 29, includes tax incentives for Build-to-Rent (BTR) developments and stricter penalties for improperly claimed tax concessions. Recent revisions to the bill, advocated by key organizations such as the Community Housing Industry Association (CHIA) and the Property Council of Australia (PCA), introduce extended tenancies, enhanced tenant protections, and define "affordable tenancies" as rents capped at 74.9% of market value or 30% of a tenant’s income. This legislation is expected to support the construction of 8,000 affordable homes, contributing significantly to rental housing supply. While the industry sees this as a crucial step forward, housing affordability remains a pressing issue, and further efforts are needed to meet the growing demand for homes

The evolving Building Safety Act 2022 (BSA) introduces significant challenges for construction firms, particularly in terms of professional indemnity insurance (PII). With new regulations and extended liabilities, firms must address concerns related to compliance, competency, and potential claims, especially as fire safety issues continue to be a priority post-Grenfell. Insurers are closely monitoring the situation, especially with increased claims activity and extended limitation periods for defects, which could lead to claims on previously time-barred matters. Firms must ensure their PII coverage is sufficient, document retention practices are robust, and risk management processes are well-established to navigate the complex requirements of the BSA and maintain insurer confidence.

Neuroarchitecture, the intersection of neuroscience and design, is transforming how we create spaces to enhance well-being, creativity, and emotional resilience. With applications spanning urban landscapes and therapeutic environments, this approach uses insights into brain function and subconscious behavior to influence design elements such as lighting, texture, and spatial layout. For example, studies employing eye-tracking technology reveal how individuals interact with iconic structures like Le Corbusier’s Villa Savoye, providing actionable data for architects. Cities like San Francisco and firms specialising in human-centric design are integrating these principles to foster productivity and emotional connection in workplaces and public spaces, paving the way for more inclusive and adaptive environments.

Contact: Julian Murray

Commercial Real Estate

In the Asia-Pacific commercial real estate market, Australia’s resilience stands out, driven by its strong economy and attractive demographics, making it a key destination for investors like Dexus, Mirvac, and Stockland, which have significant portfolios in the country. These companies benefit from Australia’s population growth, skilled migration, and economic stability, particularly in sectors such as residential, industrial, and office real estate. However, the market faces challenges, especially concerning climate risks, with industries like agriculture and mining being slow to decarbonise. Investors are encouraged to use Environmental, Social, and Governance (ESG) frameworks to assess sustainability risks. This shift towards sustainability is increasingly important as companies like Frasers Property Australia and Lendlease work to enhance their climate resilience and attract investment through transparent sustainability reporting

Across England, there has been a significant rise in the conversion of commercial properties into residential units, with a 63% increase in change-of-use applications from 2021 to 2023, according to research by Direct Line Group. This surge is driven by factors like the shift to remote work and the changing retail landscape, which have left many commercial spaces underused. Landlords are increasingly repurposing offices, retail outlets, and warehouses to meet growing housing demand, helping to maintain revenue streams and future-proof investments. Companies like Direct Line have highlighted the growing trend as landlords look to convert underutilised commercial properties, such as offices and retail spaces, to meet the increasing demand for residential units. In London, boroughs like Haringey, Enfield, and Merton are among the leaders in these conversions, with Haringey seeing a 100% increase. This trend is expected to continue, especially as areas like Somerset, Wakefield, and Bristol.

The Federal Reserve’s latest Beige Book paints a mixed picture of commercial real estate (CRE) activity across districts, reflecting subdued lending and region-specific challenges. Multifamily demand remains strong in areas like Boston and Atlanta, with rising vacancies and concessions addressing excess supply. Meanwhile, industrial and retail sectors show signs of stability, with modest rent adjustments. In New York, CRE markets have steadied, buoyed by increased office demand and a focus on owners’ financial solvency. Challenges such as high interest rates, elevated insurance costs, and policy uncertainties weigh on markets like Chicago and St. Louis. Across regions like San Francisco and Kansas City, office vacancies persist, while industrial and retail demand remains solid, highlighting the sector's uneven recovery amid economic headwinds.

Contact: Anuradha Deb, Rose Lock

Investment, Finance & Accountancy

Demand for rental family housing in the UK's "forgotten" areas—regions that have suffered from years of underinvestment in real estate—far exceeds supply. Many of these towns and cities, outside of London and the southeast, have outdated infrastructure and stagnant residential property development. Although the government has outlined plans to increase spending, addressing the housing crisis will require more than just state intervention. Institutional investors, in partnership with local authorities and developers, have the potential to unlock significant capital for developing much-needed housing in these overlooked regions. Firms like M&G Real Estate and Legal & General have been increasing their focus on regional housing developments through partnerships with local authorities and developers. Developers such as Barratt Developments and Persimmon Homes are also key players, investing in new projects aimed at revitalising these underdeveloped regions.

Andy Jones, Group Director of Corporate & BTR at Leaders Romans Group , is optimistic about the UK residential property investment landscape for 2025. He highlights that despite recent fiscal challenges, including higher Stamp Duty on second homes and concerns over borrowing costs, the government's continued support for residential property investment remains strong. Jones emphasises the stabilisation of rental inflation and the high demand for rental housing in regions with limited stock, which presents opportunities for corporate landlords, particularly in the Build to Rent (BTR) sector. With the government's housing targets in mind, further flexibility in planning and fiscal incentives are needed to address the growing demand and supply constraints. The BTR sector, in particular, is seeing substantial growth, with over 120,000 completed homes and a pipeline of nearly 274,000 units, expanding beyond London into regional areas. These developments suggest a positive outlook for residential property investment in 2025.

The City of London Corporation has approved a £191 million investment to refurbish and modernise the Barbican Centre, one of the Square Mile’s key cultural landmarks. Scheduled for completion by its 50th anniversary in 2032, the project will begin construction in 2027, with 80% of the funding covered by the Corporation and the remainder to be raised through fundraising starting in 2025. Chris Hayward, the Corporation's policy chairman, highlighted the Barbican’s significant economic and cultural contribution, generating £86 million annually for the UK economy and supporting over 1,100 jobs. This initiative is central to the City's efforts to enhance its cultural and business appeal.

Contact: Anuradha Deb Michael Woda

In partnership with Druce:

Druce, a name synonymous with luxury real estate since 1822, aims to expand its presence across multiple territories London, partnering exclusively with GKR International - Real Estate Talent Specialists, to bring top-tier talent into the business. Contact our team to discuss your interest in joining Druce's reputable team.

Email: drucecareers@gkrinternational.com

Website: www.gkrinternational.com/clients/druce-careers

Contact: Lee Riley, Grant Kaveney

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