By Mital Patel, Chief Acquisitions and Operations Officer LRC Group, Institutional Real Estate Investment and Fund Management

As the Chief Acquisitions and Operations Officer at one of the leading institutional real estate investment and fund management firms, I’ve had the privilege of navigating the ever-evolving landscape of property investment in the UK. This year, I attended the UK’s Real Estate Investment and Infrastructure Forum (UKREiiF) 2024, an event that has become increasingly significant in shaping the future of our industry. In this blog, I’ll share valuable insights, tips, and experiences from UKREiiF that can guide both seasoned and aspiring property investors in the UK.

The Growing Importance of UKREiiF

UKREiiF has evolved into a cornerstone event for the real estate industry in the UK, attracting a diverse array of professionals—from real estate brokers to surveyors, valuers, and local authorities. Each year, the forum becomes more integral, offering unparalleled opportunities for networking and knowledge exchange. This year, the event felt more vibrant and optimistic than ever before, a stark contrast to previous years where the industry was still grappling with the aftermath of various global challenges.

One of the most significant benefits of attending UKREiiF is the chance to meet key industry players face-to-face. In a digital age where emails and phone calls often replace personal interactions, the value of meeting in person cannot be overstated. This year, I had the opportunity to connect with representatives from London councils and other institutional investors, discussions that have already begun to bear fruit in the form of promising partnerships and acquisitions.

Successful Connections and Deals

Networking is more than just exchanging business cards; it’s about forming relationships that can lead to tangible business outcomes. At this year’s UKREiiF, I was introduced to several new contacts through the forum’s well-structured networking events. These introductions have directly resulted in the acquisition of two prime London assets, opportunities that might have otherwise slipped under our radar.

Additionally, a significant lease agreement with a London council is currently in negotiation—another direct result of the connections made at UKREiiF. This underscores the forum’s role as a critical facilitator of deals and partnerships in the property investment sector. For those looking to expand their portfolio or explore new opportunities, attending UKREiiF is not just beneficial but essential.

Observing Emerging Trends

Every year, UKREiiF offers a glimpse into the future of the property market, highlighting emerging trends and shifts in investor sentiment. This year, there was a noticeable shift towards optimism, with many attendees expressing a positive outlook on the market’s prospects. This optimism is driven by several factors, including a more stable economic environment and renewed interest in sustainable investment practices.

Sustainability, in particular, was a dominant theme at this year’s forum. Environmental, Social, and Governance (ESG) considerations are no longer just a buzzword; they are now at the forefront of investment decisions. As investors, ignoring ESG principles is no longer an option. For our firm, ESG has always been a priority, and this year’s discussions at UKREiiF reaffirmed our commitment to integrating these principles into every aspect of our operations—from the types of properties we acquire to the partners we work with.

Adapting Investment Strategies

The property investment landscape is constantly evolving, and successful investors must be willing to adapt their strategies accordingly. Over the past decade, we’ve seen significant changes in what tenants prioritise in residential properties. A decade ago, the focus was on compact, micro-units. Today, however, there is a growing demand for amenity-rich, ESG-compliant living spaces.

Our investment philosophy has evolved in response to these changes. We now prioritise properties that not only meet current market demands but also align with long-term sustainability goals. This approach has required us to be more selective and diligent in our acquisitions, ensuring that each property we invest in meets a stringent set of criteria, including environmental impact and future-proofing against climate risks.

Risk Management and Avoiding Common Pitfalls

One of the most critical aspects of property investment is risk management. Over-leveraging is a common mistake that can lead to significant financial distress, particularly in an uncertain economic climate. At our firm, we adhere to a conservative approach to leverage, ensuring that our investments remain within comfortable risk thresholds. This strategy has served us well, particularly over the past two years, where market volatility has exposed the dangers of overextending.

When evaluating potential investments, we conduct thorough risk analyses, considering both financial and environmental factors. This includes assessing the long-term viability of the asset, taking into account factors such as climate change and potential regulatory changes. By being cautious and realistic in our assessments, we can avoid the common trap of convincing ourselves that a marginal investment is worth pursuing.

The Role of Intuition in Investment Decisions

While data and analytics play a crucial role in our decision-making process, there is still a place for intuition in property investment. After years of experience in the industry, I’ve learnt that sometimes your gut feeling can be as important as the numbers on a spreadsheet. If an investment feels off, it usually is. This instinct has helped guide our firm through numerous acquisitions, allowing us to avoid potential pitfalls that may not have been immediately apparent through data alone.

The Future of Residential Investment

Looking ahead, I believe the residential sector will continue to be the cornerstone of the UK property market. The demand for housing is only set to increase, driven by population growth and changing lifestyle preferences. Despite the challenges posed by the economic environment, I am confident that residential property values will continue to appreciate over the next decade.

One of the key drivers of this growth will be the ongoing shift towards urban living, coupled with the increasing importance of sustainability. Investors who recognise these trends and adapt their strategies accordingly will be well-positioned to capitalise on the opportunities that lie ahead.

Lessons Learnt and Advice for New Investors

Over the course of my career, one of the most important lessons I’ve learnt is to trust the process and remain disciplined in your investment approach. It’s easy to get caught up in the excitement of a potential deal, but it’s crucial to remain grounded and adhere to your investment criteria. If a deal doesn’t meet your standards, no amount of tweaking or rationalising will change that.

For new investors, my advice is simple: don’t let your emotions cloud your judgment. If a deal doesn’t feel right, it probably isn’t. Stick to your principles, avoid over-leveraging, and always conduct thorough due diligence. By doing so, you’ll set yourself up for long-term success in the property market.

Final Thoughts and Looking to the Future

As we move forward into the next decade, the property investment landscape will continue to evolve, presenting new challenges and opportunities. UKREiiF 2024 has reinforced my belief in the resilience and potential of the UK property market, particularly in the residential sector. By staying informed, adapting to new trends, and maintaining a disciplined investment approach, we can navigate these changes and continue to achieve success.

My hope is that, as I eventually step back from the day-to-day operations of the business, the legacy I leave behind is one that emphasises the importance of providing quality housing for all. In a world where everyone deserves a roof over their head, I believe that we, as investors, have a responsibility to ensure that this fundamental need is met.

And finally…

UKREiiF 2024 was a testament to the strength and resilience of the UK property market. The insights, connections, and opportunities gained from this event will undoubtedly shape our investment strategies in the years to come. For anyone involved in property investment, attending events like UKREiiF is not just an opportunity—it’s a necessity. By staying engaged, informed, and proactive, we can continue to thrive in this dynamic and ever-changing industry.

See you at UKREiiF 2025!

By Mital Patel, Chief Acquisitions and Operations Officer LRC Group, Institutional Real Estate Investment and Fund Management