Navigating Sustainable Retrofit in Real Estate
Created in partnership with key industry players, our research-based insights set out how real estate businesses can understand sustainable retrofitting.
Real Estate: 2025 Outlook
Homing in on new opportunities
See the big picture
With an expected recovery in the transactional market, real estate prospects for 2025 are positive. While challenges remain from a sustainability perspective, I’m excited about the great opportunities across all sub-sectors of real estate next year.
Head of Real Estate, Barclays Corporate Banking
Capitalising on the upturn
After a couple of challenging years, increasing confidence in the real estate market is resulting in steadily rising transaction volumes and all the indicators are that we will continue to see an improving market in 2025 in both residential and commercial. Client sentiment suggests that bid offer spreads are narrowing rapidly, and this will drive transactional flow.
A big part of this market recovery, of course, is that real estate investors are being encouraged to deploy capital by the fact that interest rates have peaked and are now falling, although the pace of reduction may now be a bit more of a grey area post-Budget. It definitely feels like the worst is behind us and we are now on the way back up – and history has shown that transaction flows accelerate quite markedly as we move away from a trough.
Delivering on new housing targets
Tackling the housing shortage in the UK appears to be a clear priority for the Labour government with its stated ambitions to reform the planning system and deliver 1.5 million homes over the next five years. I think the public and private sector working together more closely will play a really important part in helping deliver that target.
The government’s goals around accelerating the delivery of new housing should, of course, present opportunities not only for the bigger housebuilders but also regional and smaller businesses right across the UK. The build to rent sector also has a big part to play in providing the flexibility to meet the needs of people with different lifestyles and housing demands.
Building new homes to rent will be just as important as new homes to buy in addressing the housing crisis. Occupier demand has evolved significantly in recent years with a growing demand for the flexibility that the rental model offers.
Head of Real Estate, Barclays Corporate Banking
Moving the dial on decarbonisation
The journey toward sustainability in real estate has never been more urgent. With the built environment contributing 23% of the UK’s annual carbon emissions1 and approximately 80% of today’s buildings expected to remain in use by 2050, accelerating the retrofitting of existing assets could help towards achieving significant carbon reductions.
I hear of many businesses looking for office space that helps them meet their own sustainability goals, and home buyers putting energy efficiency high on their wish lists to save on fuel bills, landlords and housebuilders should consider quickening the rate of change to ensure their product suits the demand. I think this change in mindset in relation to sustainability will be a much higher priority in the year ahead than it has ever been before.
Key takeaways
Make the most of the finance available
Real estate businesses with ambitions to make the most of a buoyant market need the necessary funding to help them succeed – and we are committed to providing that.
Seize the opportunity
The government’s ambitions to accelerate the delivery of new homes means that housing developments that have previously been blocked by planning, land ownership or other issues could become viable in the future, so be ready to seize these opportunities.
Retrofit sooner rather than later
Changes in occupational and buyer demand, plus tightening regulation, means action to retrofit existing buildings so they are more energy efficient is critical. Do nothing and you could run the risk of stranded assets.
£22bn Business Prosperity Fund
If you’re looking to unlock growth opportunities to move your business forward, our £22bn Business Prosperity Fund is available through some of our borrowing and refinancing options. See how we could work together to achieve your ambitions and strengthen the UK economy. Subject to normal lending assessment, status and application. Terms and conditions apply.
-
1 Climate Change Committee Sixth Carbon Budget
Keeping fraud front of mind
Fraudsters are as active as ever across the real estate sector, impersonating our colleagues and attempting to defraud our clients. To help protect you and your business we have a wealth of resources available. You can view our quarterly fraud webinars and take a look at our other educational resources on our Fraud Protection Hub.
Remember, Barclays will never:
Contact us
Get in touch
To discuss your business requirements and how Barclays can support you, contact us today.