Key Highlights

Off-plan properties have enjoyed a considerable surge in popularity in the investment property market in the UK. It has become a lucrative investment strategy for both national and international investors and provides a lot of potential capital appreciation and flexibility. They come with a host of enviable perks that set your property far from everyone else’s, often attracting the best renters.

Off-plan means property that is either undergoing construction or is still in the planning stage. Upon completion, it becomes referred to as a “new build”. Off-plan or new builds are often attractive as they have a lot of perks and generally require less of a learning curve to manage and need much less (if any) maintenance like an already-built property would be. They also are more energy efficient, have strong warranties supported by the developers, and have on-site property management.

Why is Off-Plan Property Trending in 2024?

So, why is UK off-plan property enjoying such an investment boom?

A lot of it comes down to two main reasons: affordability and quality. Off-plan property is sometimes seen as an affordable way to get into the property investment world. These properties are often offered below market value in order to entice investors, allowing them to get a great deal on apartments that are often situated in the city centre – i.e., desirable locations for reasonable costs.

Not only can these properties be acquired for lower than market value, but they tend to appreciate very quickly. An off-plan build will appreciate whilst it is actually in construction, with some investors choosing to sell after it is completed and still net a profit. Investors also do not have to pay interest on the mortgage for these properties until after the property has been completed. Depending on the circumstance, investors can also receive tax incentives or exemptions. 

As for the actual property itself, off-plan properties are enticing investors due to their quality and sophistication. These aren’t crumbling houses from the Victorian era or filled with low-quality amenities and yellowed furnishings from the 80s. Off-plan property is so coveted because these are brand new, modern buildings with high specifications and premium furnishings. Built for contemporary living, these properties will be furnished to a high standard and come with modern amenities. 

Trends in Off-Plan Property

Green Properties

With everyone becoming more earth-conscious, the demand for greener properties has increased. Tenants are becoming more interested in properties that have been built with green and ethical ethoses in mind, come with green features such as smart metres, green spaces, have good insulation, and are more energy efficient. As off-plan properties see increased interest from renters and investors, we can see greener practices and amenities becoming more of a focal feature for developers to incorporate.

Modern Living

As mentioned, these properties are often designed for modern living. There are plenty of trends kept in mind as property developers look at the demands of tenants and what amenities they need to make life easier. These amenities often include aspects like gyms, gated parking, concierge services, pools, and rooftop terraces. The concierge service is often highly sought after as it allows someone to receive packages when tenants aren’t in and adds a layer of security to the building. More recent, high-end builds might include “smart” features, such as smart electronics and fixtures. 

Where to Invest in Off-Plan Property

Areas that are seeing the most developments and uptick in off-plan properties are those in major cities undergoing regeneration and urbanisation.

London

Purchasing off-plan property in London has become a popular investment strategy for both national and international investors, as it offers a viable and cheap way of investing in London, which can be initially hard to break into. New build developments tend to outperform other areas of the city as well. Capital appreciation is strong in regeneration areas, outperforming the London average by 3.1%.

Here are some of the best off-plan residences to invest in today.

Park & Sayer

Nestled in a leafy green part of Canary Wharf is a premium collection of apartments called Park & Sayer. While Canary Wharf seems over-invested, there are still pockets of opportunity left in the neighbourhood. The area brings a lot of high-earning renters who want apartments that are close to their place of work. Click here to find out more about our Park & Sayer residences.

Manchester

Red Bank

Red Bank is a neighbourhood in Manchester’s Victoria North that is currently undergoing major regeneration. This regeneration will consist of a multi-use space that will incorporate 15,000 new homes, green spaces, office spaces, retail areas, community facilities, and transport hubs. It is one of the most highly anticipated developments in the city and is set to change the face of Manchester’s often-overlooked northern districts. For more about Red Bank, click here.

Spinningfields

Spinningfields is Manchester’s key business and financial district, with hundreds of companies based there. Alongside some of the top employers in the country, it is also home to numerous premium properties for Manchester’s top earners. It is this area in particular that attracts investors due to the rental demand from high-earners and the potential for capital appreciation. Check out our Spinningfields properties here.

Salford

Greengate is part of Salford, a city on the border of Manchester’s city line, which is also an area that is undergoing major regeneration. Close to the world-famous tech and media hub, MediaCityUK, Salford has become a hotspot for high-earning renters and investors. For more on Greengate and our projects there, find out more here.

Leeds

Alexandra Park

Leeds has become a top destination for people due to its wide range of opportunities for education and careers. It also boasts an exciting nightlife and burgeoning restaurant scene. While we’re always on the lookout for new developments, we currently have resale availability at Alexandra Park Apartments. These sleek apartments are modern and beautifully furnished, with a contemporary open-plan layout and high speciation. Call now to lock in with strong capital appreciation and up to 7% rental yields.

Summary

The property market has always been a tricky one to predict, but estimates for the future of UK off-plan property are exceedingly positive. The economy is already recovering and it is expected that house prices will see a rise of almost 14% over the next five years. The off-plan market is looking strong as well, with Deloitte predicting a 3% increase in off-plan property sales by 2023-26.

North Property Group is a property investment and lettings agency with a primary focus on quality off-plan property in the UK. We have offices in Leeds, Manchester, and London, finding and securing the best deals with premium developers across the country to deliver premium off-plan residences to investors.

We don’t just secure great deals with leading developers; we also provide expert advice and guidance. North Property Group can also manage your investments for you, offering a pervasive and robust lettings management service. Book a free consultation with us today to begin investing in premium UK off-plan property.