Build To Rent Booming
The build-to-rent (BTR) sector has the potential to more than triple over the next three years, according to a new report from Colliers.
The report says the sector could deliver 16,500 units by 2026. It says more than $5billion in capital was raised in the BTR sector last year.
Colliers predicts the size of projects will increase in the coming years. At the moment the average project has 281 apartments, but it forecasts BTR projects will have an average of 365 apartments by 2028.
Colliers national director of residential capital markets, Robert Papaleo, says there is a critical requirement for institutional investment to help fund such alternative housing models.
He says the nature of BTR projects is “maturing” as more institutional investors become involved.
“The urgent need for institutional investment and alternative housing models to provide a helping hand for Australia’s housing crisis has many parallels to the UK’s situation in the early 2010s, ahead of institutionalisation of its now robust Build To Rent market,” he says.
