The UK enjoys the second highest amount of investment in real estate out of all of Europe, totalling €64bn between Q4 2016 and Q3 2017 and according to PwC, interest rates will not rise enough to dampen investor enthusiasm for real estate for the remainder of 2018.
The UK’s care sector can provide higher than average returns when compared to more traditional asset classes. Retirement property developments are generally located in the warmest part of the UK and as a result can afford slightly elevated rental returns. Retirement home investments in the UK, such as those offered by One Touch Investment, typically offer an annual return of 10 percent over a ten-year commercial lease.
One Touch Investment, A London based property brokerage, offers South African investors access to care home investment opportunities on a simple sale and lease back arrangement. They undertake to refurbish and develop properties to provide specialist care for the elderly and their chosen developers work closely with the NHS trusts and local authorities to identify areas of significant demand and build care homes in most under-supplied parts of the country – ensuring a buoyant market.
Retirement home investments such as the hands-off asset classes, have a typical rental of R20,945 per week. This is thanks primarily to the high-quality refurbishment that each apartment undergoes, which usually includes hotel style services such as meal preparation, housekeeping and laundry room service. In addition to organising social activities, offerings for those residents who choose to live in one of these establishments include help getting out and about and shopping, administering medication, personal hygiene, meals provided by an on-site award-winning chef and hair and beauty salons.