Build-to-rent schemes could be the key to unlocking economic growth within Belfast and the rest of Northern Ireland, according to leading property agency CBRE. The purpose-built rental homes are common in countries such as the US, Germany and France, and are fast becoming a hot investment for property developers with the rising trend for long-term renting.

The demand for high quality residential property within Belfast is expected to rise over the next few years, and it’s thoughts that build-to-rent schemes could become a more popular option for both buyers and investors to fulfil the need for housing. Property agents CBRE have said that companies are now looking are previous sites identified for offices or hotels as places for potential build-to-rent projects.

We’re set to visit Belfast in September for the Northern Ireland Development Plans Conference where we’ll be hearing about the future schemes and developments in the country and build-to-rent development is likely to be within the topic of conversation when we welcome speakers including Belfast City Council, Queens University Belfast, Ulster University, Carbon & Energy Fund and Translink.

The trend is already kick-starting in England, with Legal & General revealing at our Liverpool event that their initial build-to-rent project was occupied much quicker than expected. An example of the trend reaching Northern Ireland is the development of apartment blocks in Belfast’s Cathedral Quarter – where Lacuna and Watkin Jones plan to develop a build-to-rent block.

Speaking on behalf of CBRE Robert Ditty, Senior Director of Capital Markets, said: ”The concept of build-to-rent is one that is now firmly established and regarded as a mainstream investment sector typically offering superior returns to other more traditional forms of investment. Residential demand, population growth and affordability issues with first-time mortgages is increasing demand for rental accommodation.”

There is a massive market within Belfast for the offering – with graduates and young professionals, of which there are many in the City, a key audience for the schemes. Ulster University and Queens University Belfast, who’ll be speaking at the Northern Ireland Development Plans Conference, will be keen to make sure those studying in the City remain to use their skills within the local economy, and the development of alternative ways of living such as build-to-rent could help retention numbers of students and drive the economy forward.

Robert Ditty added: ”Recently qualified graduates will be accustomed to modern, professionally-managed student accommodation and will most likely prefer to move into the step up equivalent when they graduate. This demand, which is commonplace across all major cities, is driving development but also fuelling institutional investor demand in the private rented sector. Investors are attracted to a sector that offers stable long-term income potential and is less susceptible to cyclical variations than other traditional real estate sectors. Build-to-rent schemes are generally of a scale to appeal to institutional investors with blocks often constructed of around 300 units with scope for further phases of development. The tenant profile being granular should result in lower void risks compared to commercial sectors.”

Join us for the Northern Ireland Development Plans Conference to further hear about the ways in which private and public sector businesses are driving growth in the city – and what huge projects and development schemes are set to come to Northern Ireland.