Key Property Trends in 2025: The investment opportunities the new year will bring

Key Property Trends in 2025: The investment opportunities the new year will bring

Key Property Trends in 2025:
The investment opportunities
the new year will bring

As we approach the end of the year and London’s skyline continues to evolve, it’s time to look ahead at the investment opportunities the new year will bring.

The 2025 property investment landscape will be driven by a series of large political, economic, and social changes. At Unica, we are closely monitoring these developments to ensure that we remain at the forefront of strategic investment opportunities. This article outlines key property trends that we believe will shape the market in the coming year.

Premium Office Locations in Central London Remain Strong

One of the most enduring trends in property investment is the continued appeal of premium office locations in Central London, particularly in the prestigious West End. Unica has long identified this area as a cornerstone of stable and long-term value growth. This property has been valuable for centuries – that isn’t changing any time soon.

Despite fluctuations in office demand due to remote working trends, premium office spaces in heritage-rich areas like Westminster will remain in high demand – the vacancy rate in the West End was just 5.4% at the end of July, according to Knight Frank. The historical and political significance of this area, combined with the scarcity of new office space due to planning restrictions, ensures that it will continue to be a safe investment. Labour-led Governments typically increase the size of the civil service, which means office space in Whitehall and surrounding areas will be in even greater demand.

Unica anticipates that investors will increasingly focus on these limited premium opportunities as the government seeks to accommodate a growing workforce. Whether for civil service offices, high-end consultancy firms, or lobbying organisations, the prestige of Westminster office addresses will likely drive rental yields and long-term capital appreciation in the area. But it will also require some investment: These top tenants want more than just the postcode, they want an office with modern amenities such as showers, high-speed internet, and incredible energy efficiency.

Growing Interest in Switzerland Due to Non-Dom Changes

Another trend we are seeing at Unica is a growing interest in residential properties in Switzerland, driven largely by the upcoming changes to the UK’s Non-Dom (Non-Domiciled) rules. The changes will significantly impact high-net-worth individuals, particularly as they will be drawn into inheritance tax liability, many of whom have historically benefited from favourable tax conditions while residing in the UK.

Switzerland has long been a popular destination for wealthy individuals due to its stable economy, privacy-focused financial systems, and favourable tax regime. With the potential tightening of UK tax laws, including potential boosts to Capital Gains Tax and the Inheritance Tax, Unica has observed a marked uptick in property searches for luxury homes in Swiss cities like Zurich and Geneva. These areas offer not only financial advantages but also high standards of living, top-tier healthcare, and proximity to major international hubs.

Back to the Office: A renewed demand for office space

The trend toward remote work that took hold during the pandemic has been gradually reversing, and 2025 is poised to see an increase in office demand as more businesses return fully to in-office policies. This shift is particularly evident in large cities where in-person collaboration is becoming increasingly valued once again, especially in sectors such as finance, technology, and professional services.

Unica has observed a growing interest in modern, flexible office spaces that cater to these evolving needs. Companies are focusing on creating environments that promote productivity, collaboration, and employee well-being. This is leading to a surge in demand for office spaces that offer high-quality amenities, cutting-edge technology, and sustainable design.

We expect this trend to have a positive impact on the commercial property market, particularly in urban centres where office space has experienced a temporary dip in demand. As more businesses commit to maintaining a physical presence in city centres, we anticipate a revival of interest in prime office locations not only in London but also in other major business hubs around the world.

How You Can Win in 2025

At Unica, we are focused on identifying the property trends that offer the greatest potential for long-term growth and stability. Premium office locations in London will continue to be a bedrock of investment security, while the evolving Non-Dom rules in the UK are driving interest in Swiss residential markets. The return-to-office movement also signals a renewed demand for quality office spaces. 2025 is going to be a great year for the luxury property market.

Published: October 28 2024
Author: Byron Baciocchi

The Rise of Luxury Property Rental

The Rise of Luxury Property Rental

The Rise of Luxury
Property Rental

Over the course of 2024 the luxury property rental market has experienced a significant surge in demand. Traditionally, High Networth Individuals (HNWIs) have preferred to purchase property, which acts as both a stable investment and a guarantee of control over their home. This is still happening all over the world. But an increasing proportion are looking to rent their next home instead of buying. This article will explain why.

The end of non-dom in the UK

One of the primary drivers of this trend is the changing tax environment in the United Kingdom. London has long been a magnet for the world’s wealthy, with the ‘non-dom’ regime allowing them to reside elsewhere for tax purposes. This is all changing. Under serious pressure from Labour on this issue, the last Conservative Government announced a wind-down of this regime. Now Labour have won the election and are moving far faster to end it. This has naturally prompted many HNWIs to reconsider their residency in the UK.

The top location: Switzerland

There is interest from these HNWIs in several other destinations, including Italy and Dubai. But here at Unica we are seeing the biggest increase in interest in one non-EU European nation – Switzerland.

Switzerland does not offer a non-dom status, but it does provide an attractive alternative in the form of “lump sum taxation.” Under this system, taxes are levied based on an individual’s living expenses rather than their global income. This approach has proven highly appealing to HNWIs seeking to minimize their tax liabilities while maintaining a luxurious lifestyle. Consequently, there has been a marked increase in interest in Swiss properties, particularly in prime locations such as Geneva and the Alpes.

Why rent?

The process of acquiring high-end property in Switzerland and other desirable European locales can be time-consuming and complex. The best properties, often situated in exclusive neighborhoods with top-tier amenities, are rarely available for immediate purchase. This scarcity of available properties, coupled with the bureaucratic procedures involved in buying real estate, has made renting an increasingly attractive option for HNWIs looking to relocate quickly. Renting allows these individuals to secure a prestigious address in a short time frame, providing immediate access to the luxury and convenience they seek.

The flexibility that renting offers is another significant factor contributing to its rising popularity among HNWIs. In an uncertain world, where economic, political, and social landscapes can shift rapidly, many wealthy individuals are hesitant to commit to purchasing property in a new location without first experiencing it firsthand. After all, it wasn’t so long ago that London was seen as a forever-home for the super-rich. Renting provides an opportunity for HNWIs to assess whether a particular city or region suits their long-term needs and lifestyle preferences. This option is particularly appealing in markets where property values are volatile or where future residency plans are uncertain.

Remote work and renting

The rise of remote work and the increasing mobility of global elites have also played a role in this trend. As the ability to live and work from anywhere becomes more feasible, HNWIs are less tethered to a single location. Renting offers the flexibility to move between luxury properties in different countries or regions, depending on the season, lifestyle preferences, or business needs. This mobility is further enhanced by the growing availability of fully serviced, furnished luxury rentals that offer all the amenities and comforts of a permanent residence, without the long-term commitment.

In conclusion, luxury rentals are likely to become an increasingly common option for HNWIs who want to keep as much flexibility as possible. The wisdom of actually buying a luxury property and seeing its value rise won’t go anywhere, and many HNWIs will still choose to buy – but renting will take a larger and larger portion of the pie.

Published: September 11 2024
Author: Ricardo Gato

Key Trends in the UK’s Commercial Property Market in the First Half of 2024

Key Trends in the UK’s Commercial Property Market in the First Half of 2024

Key Trends in the UK’s
Commercial Property Market
in the First Half of 2024

After quite a few years of change through the pandemic and rising interest rates, the first half of 2024 has seen a mostly stable commercial property market. But beneath that veneer of stability there are several important and interesting trends that anyone looking to build generational wealth through property investment should pay attention to.

Stable but High Interest Rates

The sustained period of high interest rates has led to a somewhat cautious market, with potential investors hampered from purchasing property and sellers eager to hold onto assets rather than sell at a large discount. This trend is particularly evident in London’s commercial property market. According to property data group CoStar, there were no transactions exceeding £100 million in the City of London during the first half of the year. Given the lack of buyers, if you do have some capital some property is available right now that would usually be snapped up in a low interest rate environment.

WFH not going away, but differs a lot across the city

The WFH trend, which gained momentum during the pandemic, has generally stabilised. Office workers aren’t getting more days at home, and a lot are coming back into the office more. But we aren’t back to 2019 by any means.

WFH rates seem to vary a lot across the city. In central London, for example, the desirability of office spaces has become highly dependent on location and quality. Employees are willing to commute to prestigious and aesthetically appealing offices in the West End, where the vacancy rate was just 5.6% at the end of July, according to Knight Frank. This is especially the case as they can enjoy themselves at the theatre or in world-class restaurants in the West End after work. In contrast, the vacancy rate in Canary Wharf stood at 11% at the end of July, reflecting the reduced demand for glass boxes far away from other amenities.

This trend underscores a wider bifurcation in the market, where prime locations with desirable office environments are maintaining high occupancy levels, while less appealing areas struggle to attract tenants. Investors looking to capitalise on the commercial property market must carefully consider the location and appeal of potential investments. A London postcode isn’t quite enough.

Sustainability as a Key Driver of Demand

Today’s top tenants have serious climate change goals, and know that their buildings will go a long way to meeting them. This means properties that meet stringent climate targets are in high demand. Savills reports that over 55% of office rental take-up in the central London market in the first half of 2024 has been in buildings rated Outstanding or Excellent in the BREEAM standard.

This trend has led to more bifurcation in the market, where newer, greener buildings are enjoying stable rents and low vacancy rates, while older, less sustainable properties are finding it harder to compete. For investors, there are huge gains to be made in older buildings that can be brought up to standard with a capital injection.

Applying the Lessons of London to other cities

London is not alone as an incredible place to invest. The lessons of the city can be applied elsewhere.

Election could see London demand increase

The new government has signalled its intent to reform planning laws, aiming to stimulate growth and address the UK’s housing shortage. While these reforms may pave the way for increased construction in suburban and outer London areas, their impact on central London’s commercial property market is expected to be limited.

Labour Governments typically employ more civil servants than Conservative ones, so some increase in demand for top tier office space is likely over time. Already we’ve seen the new Government drop a Conservative plan to greatly reduce the headcount of the civil service.

Stability means this is a good time to invest

With high interest rates and worry about WFH trends keeping a lot of investors out of the market, those with some capital to invest can snap up some real bargains. This is especially the case if they have the money to bring these buildings up to a high sustainability standard, which will make them massively desirable to office tenants – particularly those in Government.

Published: August 20 2024
Author: Byron Baciocchi

The Top Cities in the World for Real Estate Investment: Why Old Beats New

The Top Cities in the World for Real Estate Investment: Why Old Beats New

The Top Cities in the World
for Real Estate Investment:
Why Old Beats New

If you look at commercial real estate markets from a pure price perspective, one city stands out: London. According to Savills, the West End of London commands the highest annual cost per square foot – around US$283, well above the second-placed Hong Kong.
So why is London the best city in the world for commercial real estate investment?

The answer lies in the age of the buildings and the capacity for London itself to keep growing. It is a lesson we can take from the UK’s capital and apply all over the world.

The Unique Appeal of Historical Buildings

The most expensive buildings in London are not the newer builds – they are the beautiful heritage properties, which exude an old-world glamour modern boxes of glass never will. This allure is complemented by their rarity: It is impossible for a developer to build a new old building. As a result, its existing old buildings become even more valuable, as they are so rare.

These structures, often meticulously preserved, provide a tangible connection to the past, something that modern buildings rarely achieve. And the world’s best organisations love the glamour and status that leasing office space in these buildings give them.

The investment potential of heritage properties

For all of that glamour, a lot of heritage buildings all over the world are in a poor state. Even in London there exists far too many incredible properties that can’t be rented to the best tenants because their beautiful exteriors hide decaying interiors without the modern conveniences needed for the type of office tenant. (Think showers, good internet, and bike parking.) Too many owners don’t have the ability to really bring these buildings to their full potential.

This presents a huge opportunity for investors willing to put some time and capital into making a neglected treasure shine again.

Why you need more than old buildings

London is far more than just a collection of heritage buildings: It is a living and breathing megacity with a bustling economy able to rent offices in those beautiful older buildings.

This is a crucial factor for real estate investors to consider. Are people still going to be working here when my grandkids inherit this generational investment? London retains the ability to grow thanks to its massive commuting belt and connection to the continent. You can also trust that your investment is unlikely to be put in jeopardy by a sudden political swing – nowhere has enmeshed the common law right to private property more than England. This sets London apart from cities in China where there is a lot of economic activity but less of a long-term guarantee of political stability.

Applying the Lessons of London to other cities

London is not alone as an incredible place to invest. The lessons of the city can be applied elsewhere.

Paris: Beautiful heritage, huge commuter belt

Paris has long been paired with London, and for good reason. While smaller it offers an incredible range of beautiful heritage property that the world’s best brands love to have offices in. And like London it has a gigantic commuter belt meaning the demand for that property can keep on growing and growing.

Geneva: Limited Space, High Value

Geneva, like London, offers a constrained commercial real estate market that is ripe for investment. The city’s picturesque setting and historical significance make its old buildings highly attractive to investors. Geneva’s limited space ensures that demand remains high, driving up property values. Investors looking to capitalise on this should focus on properties that combine historical charm with modern functionality.

Conclusion: Building Generational Wealth

Investing in cities with historical buildings and limited expansion opportunities is, not just about immediate returns; it’s also about building generational wealth, which is our key goal at Unica. These investments are long-term plays that provide sustained value over time, not quick bursts of money. Heritage properties, particularly in cities with strict building regulations and spatial constraints, are less likely to face market saturation. This ensures a steady appreciation in value, making them ideal for investors looking to create lasting financial legacies.

Published: July 22 2024
Author: Chloé Roussel

UK Commercial Property Sector Poised For Rebound

UK Commercial Property Sector Poised for Rebound

UK Commercial
Property Sector
Poised for Rebound

The UK commercial property sector is on the cusp of significant transformation. Amid shifting economic currents, evolving work patterns and Government EPC regulations coming into force, the market for best-in-class assets shows signs of strength and growing potential.

As interest rates stabilise and the economy navigates post-pandemic realities, investors are increasingly optimistic about the future. With prices alluringly low, the time seems opportune, and for many of the UK’s large commercial investors these green shoots are beginning to drive active investment. With the likes of GPE (Great Portland) announcing a rights issue to raise £350m to invest in the market now, the signs are that investors are beginning to realise that the very best assets in the most central locations are about to see a fresh wave of investor attention.

Stabilising values and emerging opportunities

Despite the challenges posed by fluctuating office demand and regulatory changes, the UK commercial property sector is demonstrating resilience. According to recent insights, the sector’s values are stabilising, with indications that the market may be bottoming out. This bottoming out is crucial as it signals a potential turning point, providing a foundation for future growth.

Industry leaders, such as those at Blackstone, have expressed confidence that the commercial real estate market is finding its footing. With values beginning to steady, investors are reassessing opportunities, particularly in sectors poised for growth, despite broader market uncertainties.

However, while the City thrived, the West End experienced a small downturn in activity, this has been attributed to a dwindling supply. Upon closer examination of the West End, each of its submarkets experienced a surge in Grade A space, averaging a remarkable 104% increase in Grade A, compared to Q4 2022, notably with a threefold expansion in King’s Cross-Euston.

The office sector: adapting to new norms

One of the most debated aspects of the commercial property market is the office sector. The pandemic accelerated the adoption of work-from-home (WFH) policies, leading to a re-evaluation of office space needs. Although this shift posed challenges, it also opened up new possibilities for flexible workspaces and hybrid models.

British Land’s CFO Bhavesh Mistry, quoted by Reuters, reported that across their office portfolio occupancy from Tuesday to Thursday at least is at – or above – pre-pandemic levels. However, demand seems focused on prime central London locations, and superior commercial offerings, with the landlord shedding assets in Paddington, Euston and Canary Wharf.

Landlords and property managers are increasingly focused on enhancing building amenities, improving digital infrastructure, and promoting environmentally sustainable practices to secure the best tenancies. Such adaptations are essential as companies seek to balance remote work with in-office collaboration, driving demand for versatile and innovative office environments. However, with sustainability it is not just meeting a tenant’s expectations that landlords need to concern themselves with – it will very soon be part of Government regulation.

Sustainability and regulatory compliance

A critical factor shaping the UK commercial property sector is the need for compliance with new energy performance certificate (EPC) regulations, with buildings requiring a rating of E or higher.

Whereas previously lower performing assets might have been unappealing to some tenants, requiring landlords to reduce rents to make them attractive, now lack of sustainability compliance will make these assets plummet in value if left as is.

The need for landlords to upgrade older properties to meet stringent energy efficiency standards comes at a cost, but it also presents an opportunity for owners to enhance the appeal and value of their assets – or for buyers to buy low and invest in improvements. Last year Blick Rothenberg found in an annual survey that only 80% or landlords were aware of the need for compliance. This, in the last year, has increased to 100%. Previously where 80% of those surveyed in 2023 didn’t know the cost of improvements needed; this year just 10% are still unsure.

Investment insights and market sentiment

The overall sentiment among investors in the UK commercial property market is cautiously optimistic. With interest rates steadying the cost of borrowing is becoming more predictable, which is essential for planning and investment decisions. This stability is likely to encourage a renewed flow of capital into the sector, with investors seeking to capitalise on emerging opportunities in office space, retail, and industrial properties.

Additionally, prime central London remains a focal point for investment. The city’s diverse economy, robust infrastructure, and global connectivity continue to attract both domestic and international investors. As the market adjusts to new dynamics, London’s commercial property sector is well-positioned to lead the way in recovery and growth.

Published: June 19 2024
Author: Byron Baciocchi

How to tackle the commercial EPC time bomb

How to tackle the commercial EPC time bomb

How to tackle the
commercial EPC
time bomb

Remit Consulting’s latest figures spell positive reading for the commercial property sector; UK office occupancy levels have hit the highest weekly average since the start of the pandemic.

More and more people are returning to the office which is fantastic news for investors and developers. However, the ticking EPC timebomb presents a major challenge for existing stock and if not defused, we simply might not have a space for all these people.

In short, an Energy Performance Certificate (EPC) rates how energy efficient a building is using a grading system from A to G (with ‘A’ the most efficient grade).

As of April 2023, commercial buildings must meet the minimum EPC rating of ‘E’ or above otherwise they are prohibited from being sold or leased. This is only the first hurdle of a long and challenging race. Before 2027, commercial buildings must have an EPC rating of a ‘C’ or above and this will ramp up to ‘B’ or above in 2030.

Research from FORE Partnership estimates that there are around 6,500 office buildings above 20,000 sq ft in London that are in desperate need of retrofit to meet these EPC regulations, with only around 1-1.5% of existing commercial buildings being retrofitted. Meanwhile research from Savills highlights that over 1 billion sq ft across the UK is below the required EPC ‘B’ rating, further highlighting the size of the challenge at hand.

However, this presents excellent opportunities for savvy hands-on investors and developers to acquire, retrofit and then attract the best commercial occupiers.

Improvements to wall and roof insulation will make a major difference, helping to manage temperatures and reduce heat loss, while replacing inefficient lighting with energy efficient LED options and installing occupancy sensors or timers can help control usage. Another aspect to consider is the installation of solar panels on the roof. This can help generate an electric source resulting in less electricity being used from the grid.

However, all of this doesn’t come cheap. The cost of upgrading an existing building from how it is today to 2030 standards is estimated to be £40 per sq ft – not including normal refurbishment costs, which is more than some buildings can command in rent alone.

To support the retrofitting of existing commercial buildings, investors can access incentives and funding from the UK government. In addition, there are many specialist lenders in the market that offer green loans to finance this area of refurbishment.

With tightening deadlines looming and taking into account the fact that many buildings will need to be made vacant for necessary works to take place, opportunistic investors should be keeping an ear to the ground now for those seeking to offload discounted buildings before they become stranded EPC-failing assets. In this landscape, those with in-house development experience will come into their own.

Published: April 11 2024
Author: Byron Baciocchi

The Rise of Soho, London’s Choice for Prime Office Space

The Rise of Soho, London’s Choice for Prime Office Space

The Rise of Soho,
London‘s Choice for
Prime Office Space

Tucked away in the heart of London’s bustling West End lies Soho, a neighbourhood brimming with character, creativity, and opportunity. What was once a vibrant hub for artists, writers, and musicians has now emerged as one of the most sought after locations for businesses seeking prime office space in the capital.

A Historic Haven of Creativity:
In the heart of London’s West End, lies Soho, an area deeply rooted in creativity and entertainment. Starting life as a royal park and developed by Henry VIII, Soho blossomed into a vibrant neighbourhood attracting artists, writers, and musicians seeking inspiration and community. Visionaries like Arthur Lasenby Liberty (the founder of Liberty) and property investment tycoon Paul Raymond left an indelible mark on Soho’s landscape, laying the foundation for its transformation into a dynamic commercial district.

Iconic Buildings and Cultural Landmarks:
RSoho’s streets are filled with iconic buildings and cultural landmarks that speak to its rich heritage. From the spire of St. Anne’s Church to the bustling market stalls of Berwick Street (one of London’s oldest markets dating back to 1778), the area has a timeless charm. After dark Soho plays host to legendary music venues, such as the world famous Ronnie Scott’s Jazz Club and the iconic Marquee Club, where acts like The Rolling Stones and David Bowie played.

Prime Office Space in the Heart of London:
Strategically located in the heart of London, Soho offers unrivalled connectivity and accessibility. With tube stations like Oxford Circus and Tottenham Court Road nearby, commuting to and from Soho is convenient and efficient. Its central location also provides easy access to key London landmarks and attractions, making it an ideal destination for client meetings and networking events.

Amenities and Opportunities:
Beyond its office spaces, Soho boasts a wealth of amenities that cater to the needs of modern businesses. Colleagues can meet clients in trendy cafes, explore the delights of Chinatown or even eat in world-class restaurants. And after work they can enjoy the vibrant entertainment venues that line the streets of Soho, all of which offer endless opportunities for team building and client engagement. From the historic charm of Carnaby Street to the trendy vibes of Old Compton Street, Soho’s streets are alive with energy and opportunity.

Exploring Soho’s Best Streets and Notable Residents:
If you wander through Soho’s streets, you’ll encounter a tapestry of history and culture woven into its fabric. Poland Street, with its storied past and iconic establishments like The Ivy Soho Brasserie, offers a glimpse into Soho’s illustrious history. Meanwhile, Wardour Street bustles with activity, serving as a hub for businesses and creative professionals alike. From literary giants like William Blake to modern-day entrepreneurs, Soho has been home to a diverse array of notable residents who have left their mark on the neighbourhood.

Business Potential in Soho:
With its rich history, prime location, and vibrant community, Soho is the premier choice for businesses seeking prime office space in London. As the UK briefly dipped into recession last year, it is communities like Soho that are driving the UK economy forward.

Real estate investment in Soho continues to thrive, unaffected by uncertainties, emphasising the stability and resilience inherent in the capital’s property market. And is why Unica Capital continues to invest in properties within the area on vibrant streets such as Wardour Street and Poland Streets which blend historic charm with modern amenities, providing prime office spaces tailored to the needs of today’s businesses. These streets are full of historic charm. Poland Street, is famously where poets such as Percy Bysshe Shelley and William Blake once resided, and is a contrast to the vibrant energy of Wardour Street (named after Sir Edward Wardour, an official at the Exchequer). Soho offers a diverse array of options for businesses seeking a prestigious address.

Published: March 18 2024
Author: Ricardo Gato

How Planning Changes for Commercial and Residential Properties can affect development in London

How Planning Changes for Commercial and Residential Properties can affect development in London

How Planning Changes
for Commercial and
Residential Properties can
affect development in London

Easing of Planning for Brownfield and Change of Use for Commercial and Residential Properties

In our ever-evolving urban landscape, the regeneration of our town centres remains paramount. It’s no secret that many high streets across the UK have struggled, with buildings sitting vacant for extended periods. In a bid to rejuvenate England’s urban landscapes and address the pressing housing shortage, the government has announced a series of measures aimed at streamlining planning regulations and promoting the conversion of commercial spaces into residential properties.

This significant shift in planning policies is aimed at breathing new life into urban spaces. With the easing of restrictions on brownfield development and conversion of commercial properties into vibrant residential hubs, property investment specialists and real estate investment trusts (REITs) are poised to play a pivotal role in reshaping our cities.

The recent introduction of flexibilities in permitted development rights marks a crucial milestone. Now, developers have greater freedom to convert underutilised commercial buildings into much-needed residential units. This shift not only addresses the pressing demand for housing but also injects vitality into dormant urban areas. Under these new measures, buildings classified under Use Class E, including shops, offices, and gyms, can be converted into residential properties (Use Class C3) without the need for full planning permission.

Regeneration and Adaptation:
Robert Jenrick, the former Secretary of State for Housing, Communities, and Local Government, emphasises that these regulatory changes are geared towards revitalising town centres and addressing the housing crisis. By providing flexibility in land use and encouraging the conversion of unused commercial spaces into homes, the government aims to create vibrant, adaptable urban environments for the future.

But this isn’t just about bolstering the housing market; it’s about building dynamic, inclusive communities. Creative reuse of commerical space offers opportunities for diverse leisure activities, enhancing the quality of life for residents and visitors alike.

Consider iconic London landmarks like Battersea Power Station and the BBC Television Centre, which have both undergone remarkable transformations, providing modern commercial and residential spaces, signalling the dawn of a new era in urban regeneration. There was news last week that the BT Tower will undergo an extensivea extensive redevelopment in order to repurpose this iconic London landmark into a hotel. These success stories underscore the immense potential inherent in repurposing existing structures for the benefit of the community.

Initiatives like the London Plan Review and consultations on strengthening planning policy for brownfield development are driving forward-thinking strategies to ensure sustainable growth. By prioritising brownfield developments and encouraging flexibility in policy implementation, policy makers are laying the groundwork for a more resilient and vibrant urban landscape.

However, it’s essential to strike a balance between progress and preservation. Westminster City Council announced proposals this week that see a ‘retrofit first’ approach to redevelopment. The council said it will promote retrofitting to cut down on carbon emissions, aiming for a minimum utilisation of 50 percent of existing buildings. This approach mirrors the strategy employed by Unica Capital in property investment. It not only aligns with our ESG objectives but also preserves the architectural integrity of the communities where we invest.

While these changes present exciting opportunities for property investors and developers, ensuring quality, safety, and adherence to standards remains paramount. Responsible development practices are key to ensuring that our urban spaces thrive for generations to come.

Looking Ahead:
As these planning changes take effect, it’s essential to monitor their impact on urban development and housing provision. The conversion of commercial properties into residential units presents opportunities for property investment in urban regeneration. However, these changes also necessitate careful planning and consideration of long-term implications for communities and urban landscapes.

Government Initiatives:
In addition to the regulatory changes, the government has unveiled a suite of initiatives aimed at supporting high street regeneration and fostering economic recovery. From financial assistance to regulatory relaxations for businesses, these measures complement the broader goal of creating vibrant, inclusive urban environments.

As England embarks on this journey of urban renewal and housing provision, collaboration between policymakers, industry professionals, and local communities will be key to achieving sustainable, inclusive urban environments for generations to come.

Published: March 7 2024
Author: Chloe Roussel

How does a recession affect property investment?

How does a recession affect property investment?

How does a recession
affect property investment?

As the UK economy officially enters a recession, the impact on the property market raises questions and opportunities for investors. We take a look at how investors can leverage the market’s nuances to secure profitable investments with long-term returns.

The latest recession
“The UK economy has officially entered recession, figures show,” reports Sky News. This downturn presents both challenges and unique opportunities for property investors.

The current recession echoes historical trends, but not all recessions are created equal. While economic downturns typically lead to financial challenges for individuals and businesses, they also present unique opportunities for proactive property investors and REITs. Understanding the dynamics of the market is crucial for maximising returns and minimising risks.

One of the primary impacts of a recession in the UK, is the fluctuation in property prices on the housing market. Unica Capital believe that a recession is not necessarily all doom and gloom. Pettyson Estate agents agree, “Entering a recession isn’t automatically bad for everybody.” The last major recession, commonly referred to as the Great Recession of 2008-09, saw varying effects across different sectors and locations. Similarly, the 2020 recession, driven by the unprecedented nature of the COVID-19 pandemic, brought its own set of challenges and opportunities. For investors adopting a long-term view of the market, the most pivotal part of any recession is the rate of recovery.

Opportunities for investors
Gladfish, highlights the potential for investors to capitalise on the market’s nuances. “Global economic recessions can bring about significant challenges, but they also present unique opportunities for property investors in the UK,” notes the article. In particular, London has performed far better than any major cities in the US and Europe since the end of the COVID-19 pandemic. And is in a far better position to recover from a UK and wider global recession. By diversifying portfolios and focusing on high-demand areas, and real estate investments with refurbishment or growth opportunities, investors can mitigate risks and capitalise on the market’s potential.

One significant opportunity during a recession is the ability to purchase properties at lower than market value. As economic downturns lead to financial challenges for individuals and businesses, distressed properties often become available for sale at discounted prices. While a downturn can hurt the short-term performance of commercial real estate, it is essential to remember that the market will eventually recover. For investors with liquid capital (such as Unica Capital), this presents a unique advantage to acquire high-quality assets at a lower cost, potentially unlocking significant value in the long term.

Despite the challenges posed by economic downturns, the UK property market has historically shown resilience and the ability to recover. The private rented sector (PRS) tends to be counter cyclical to the sales market. Even during times of uncertainty, rental demand remains robust, providing a stable income stream for investors.

A Long Term Approach
Unica Capital’s commitment to identifying, financing, and managing unmatched real estate investment opportunities positions investors to capitalise on the market’s nuances. With a portfolio comprising prime office real estate across London and international properties, such as long term rental properties in the Alps, Unica Capital offers investors access to high-performing markets with long-term growth potential.

Taking a long-term view is crucial when investing in the property market during a recession. Looking beyond short-term economic fluctuations, investors should consider strategic investment opportunities with strong potential for sustainable growth. Factors such as population growth, infrastructure development, and government policies can significantly impact the market in the coming years, influencing the performance of real estate investment properties.

Despite the challenges posed by global recessions, historical trends have shown that the UK and European property markets, in particular London, often recover after a downturn, making it an attractive option for long-term investment.

What’s next?

As investors navigate through economic uncertainties, maintaining focus, diversifying portfolios, and leveraging investment fundamentals are key. By partnering with reputable real estate investment trusts like Unica Capital, investors can seize opportunities and invest in resilient property portfolios even during recessions.

Published: February 22 2024
Author: Byron Baciocchi

Prime Office Investments, An Industry Overview.

Prime Office Investments, An Industry Overview.

Prime Office Investments,
An Industry Overview.

Unica Capital expands property investment portfolio in Victoria London

The prime office market in 2024 is shaping up for a dynamic year, marked by resilience and growth. As the industry anticipates a positive trajectory, we explore the key trends and factors influencing this sector.

UK’s Prime Office Allure
The United Kingdom maintains its status as the prime strategic investment destination for commercial office spaces, underpinned by the resilience shown since the pandemic. London, in particular, has maintained its position as a magnet for those looking for long-term investment security through sustained prime rental growth. The city’s enduring appeal has consistently drawn property investors from across the globe. Recent data from CBRE’s 2024 European Investor Intentions Survey reinforces this notion, revealing that London is the most attractive city in Europe for investors for the second consecutive year with almost 10% growth compared to Amsterdam (2nd) with 7% and Berlin (3rd) with 6%.

Despite facing ongoing inflationary pressures and global economic fluctuations, London’s resilience has kept investor sentiment strong. The city’s unique combination of economic stability, cultural significance, and robust market potential has consistently supported a positive outlook.

Rising Investor Confidence
REITs that invest in prime offices are increasingly optimistic about the market’s prospects. One significant factor contributing to the buoyancy of the prime office market is the Bank of England’s decision to keep the base rate unchanged. For investors with ample liquidity, this presents a golden opportunity to capitalise on favourable market conditions, making it an exciting time for Unica Capital and other forward-looking property investors.

A view strongly held by Byron Baciocchi, Chairman and Chief Executive of Unica Capital, who stated in a November 2023 Property Week interview, “our own business is on the acquisition trail as we seek to build our portfolio and generate stable returns, looking for both turnkey opportunities but also those where refurbishment and repositioning work can help unlock value.”

The West End drives London’s Prime Office Rental growth
One noteworthy trend in the prime office market is the resurgence of office rentals. London, in particular, has witnessed a remarkable recovery, with prime office rentals surpassing pre-pandemic levels by 3.8%. The West End leads this resurgence, boasting an average rental growth rate of 8.8%. Other areas like Westminster and Victoria are also witnessing substantial growth. Additionally, Soho and Mayfair are experiencing the benefits of their strategic locations, offering connectivity and a wide range of amenities. This is exemplified by recent acquisitions such as Great Smith Street, Wardour Street and Poland Street.

Embracing the Return to Prime Offices
The return to prime office spaces is gaining momentum as businesses emphasise the importance of employees returning to the workplace. Major corporations, including EY, Citigroup, Lloyds Banking Group, and HSBC UK, have introduced policies to encourage office attendance. This shift is indicative of a broader trend toward reoccupying prime office spaces in attractive locations away from the traditional hubs of Canary Wharf to more connected locations like Soho and Mayfair.

Unica Capital’s prime office properties are well-prepared to accommodate a diverse mix of tenants. Some tenants are downsizing as they embrace hybrid working, while larger firms are moving from older headquarters to modern buildings with stronger environmental credentials.

Seizing Opportunities
The prime office market in 2024 offers a wealth of opportunities for investors. Turnkey investments, as well as properties that require refurbishment and repositioning, can unlock significant value in this thriving market.

Investors are drawn to the UK’s prime office spaces, driven by confidence in the market’s potential. Rising rentals, the return to offices, and the evolving needs of tenants all contribute to the positive outlook for this sector. As the industry adapts to changing dynamics, the prime office market remains an attractive and promising real estate investment landscape.

Published: February 8 2024
Author: Alexandre Piechaud

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