There is a global trend forming in the property industry and investors are scrambling to get a slice of the action. A trend of old buildings in central locations being refurbished instead of demolished, and investors are snapping up what they can as they are considered to have great rental returns.
One of the reasons for this trend is globalisation, which has brought a large amount of international travel with business and leisure visitors travelling to cities. This has resulted in many areas seeing a rise in foreign arrivals who want to see old buildings with character.
Paul Willan, of Greg’s Properties in Manchester commented: “Many people prefer older buildings. That’s why there is huge demand for both commercial and residential properties, to retain their older character. After refurbishment their value can shoot up”.
Investors are recognising a central location is what travellers want as city centres have a central position in the arts and cultural scene. Many cities such as London, Liverpool and Manchester are all easy to reach by low cost airlines, making them a transportation hub for tourists.
Old buildings are usually situated in prime locations and investors are aware that old properties with history have more value attached to them. It is human nature that people want to preserve historical buildings and the trend has hugely benefitted the property industry in the UK. Willan commented: “People just love to protect heritage or culture. Urbanisation and modernisation have picked up too fast in the 21st century.
Old buildings are considered by investors as recession proof during downturns as buildings with heritage or historical character will maintain their value through the times. Old buildings tend to be cheaper than new buildings and refurbished properties always sell well, particularly if they are in the city centre.
The UK refurbishment market has grown steadily since the 1970s and is continuing to rise. The findings have certainly emphasised that the trend of old buildings being refurbished is a popular option for investors, mainly as they hold their value and offer great rental returns whether it is to a tenant or a tourist visiting a city.
A fantastic Example of a Refurbished Building is Manchester’s Gregs Buildings.
This is an excellent example of mid-19th century architecture offering exciting development opportunities. This impressive building in the heart of Manchester City Centre really is attracting huge amounts of interest from a wide selection of professional companies.