Nottingham real estate is holding strong, but it’s not all plain sailing
The real estate sector is facing difficulties across the UK; however, Nottingham’s property market appears to be doing well. Despite yields falling in the UK’s larger cities, due to investment competition, smaller cities have been given the chance to attract potential investors with good property stock.
Peter Dilks, our partner and head of Nottingham real estate, explores the reasons for Nottingham’s success and what needs to be done to ensure it continues:
Nottingham is a student hub, and this has helped the real estate market to thrive. As the student population grows, the amount of private rented sector/built-to-rent developments that are needed grows too, with graduates deciding to remain in the city.
These developments are transforming the city centre, and there are several schemes planned to continue the growth of the student and graduate market.
As well as this, the development of the Broadmarsh area and office schemes such as the redevelopment of the Redmayne & Todd building will assist both the leisure and business sectors within the city, boosting employment opportunities and providing high-grade office and retail space for prospective tenants.
However, these schemes are not enough to keep Nottingham’s growth on an upward trajectory. More creative solutions are needed to provide larger businesses with the units they need to move to the city. After all, affordability can only do so much.
A focus on transport connectivity is also necessary for Nottingham’s continued success on the regional and national playing fields. The East Midlands HS2 Hub at Toton could revolutionise business and personal travel in the area, strengthening connections to Birmingham and the rest of the Midlands.
Nottingham Council is willing to help the real estate sector succeed and has approached planning applications to grow the ‘Build to Rent’ sector in a pragmatic fashion. Nevertheless, improvements are always possible. For example, Nottingham’s neighbour, Leicester, has gained support in the form of the city’s Mayor, Peter Soulsby, allowing development to happen more proactively. It may be worth Nottingham assessing this approach carefully, in order to learn the most effective strategies when it comes to real estate development.