Rising costs and limited capital could force some operators in the sector to exit the market.
The build-to-rent sector is facing a wave of consolidation even before it can take off, as surging costs and rising competition squeeze investment returns.
“We have noticed various BTR projects pivot to build-to-sell or purpose-built student accommodation, or developers look to enter into joint venture arrangements or utilise fund-through models to proceed or exit the development,” the analysts wrote in a report earlier this year. “The primary cause of this is the ability of developers to raise the required debt and equity capital to proceed with these projects,” the analysts wrote.
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