Real estate offers real opportunities for growth

Gill Ogilvie, Managing Director of Will Rudd Edinburgh.

Last week the UK's Real Estate Investment Infrastructure Forum (UKREiiF) took place in Leeds. With over 12,000 delegates, the conference was a bustling hub of innovation, ideas, and challenges focusing on the vitality and dynamism of the real estate sector.

Out of the many thousands of seminars, one of the sessions I chose focused on purpose built student accommodation (PBSA). In Scotland, particularly Glasgow and Edinburgh, this has been a political hot potato. The reality is that due to rent caps and the introduction of NPF4, PBSA has often been the only viable investment opportunity for external investment in our cities. 

Nowadays, students are not just looking for a place to sleep but a community to thrive in. They also want to live in city centres or in vibrant student areas. This shift necessitates that planners become more flexible and open to innovative approaches for delivering a product that continues to be in high demand.

In this seminar Sarah Shaw, Head of Planning from Glasgow City Council, confirmed that this is already happening in Glasgow where there is a push to connect more distant areas to the city centre, helping enhance affordability and spread the concentration of PBSA. This plan aligns with the broader strategy to increase residential spaces in the city centre, promoting mixed-use developments which integrate student housing, retail, and communal areas. This is challenging the outdated notion of students as a disruptive presence. The demand for student accommodation continues to grow, and while there are competing agendas, including investor returns and affordable rents, the future opportunities for Scotland are positive.

Another session explored modern methods of construction (MMC). Cardiff Council in partnership with Wates is using volumetric MMC units on ‘meanwhile use’ sites to provide temporary housing for homeless families. This is similar to a project Will Rudd supported for Social Bite in Edinburgh. This approach, though initially more expensive, offers significant benefits in terms of programme and reuse and could be a valuable strategy for councils going forward. By utilising moveable units, Cardiff has reduced the reliance on hotels for temporary housing, championing practical and humane solutions to homelessness.

Green freeports were also the topic of a seminar I attended, which outlined Scotland’s potential in renewable energy and sustainable development. Freeports on the Forth and Inverness and Cromarty Firth open up significant opportunities for investment and job creation. Emphasising Scotland's rich technological heritage, there is a clear need to underscore the importance of training young people in the skills needed for developing the green technologies of the future. By including "green" in the freeports name means there is a real focus and commitment to sustainability, positioning Scotland as a leader in this new industrial revolution.

Lastly, the development plans for the west of Edinburgh were showcased as a leading placemaking initiative. Extending the city towards the airport, this project promises a mixed community with blind tenure housing, ensuring diversity and inclusivity. The emphasis on pedestrian-friendly developments, supported by excellent public transport, aligns perfectly with contemporary urban planning principles. However, challenges remain, particularly the impact of rent caps on Build-to-Rent (BTR) developments, which need to be addressed to ensure the project's success.

Throughout the forum, two words repeatedly resonated with me: "partnership" and "placemaking." These concepts are not just buzzwords but essential principles for the future of real estate development. By fostering partnerships and focusing on creating vibrant, sustainable communities, we can navigate the challenges and seize the opportunities that lie ahead.

UKREiiF highlighted the critical issues and innovative solutions shaping our sector. As a Scottish engineer, I'm encouraged by the focus on sustainability, community, and innovation. These are the cornerstones upon which we can build a thriving future for our cities and citizens.

Gill Ogilvie is Managing Director of Will Rudd Edinburgh.