The world of property investment is constantly evolving, and savvy investors are always on the lookout for emerging trends and opportunities. One such trend that has gained momentum in recent years is the mixed-use property market. These properties, which combine commercial and residential units in a single development, have become a hot topic in the real estate investment landscape. In this comprehensive guide, we will delve into the current state of England’s mixed-use property market, identifying where the opportunities lie and why this sector is gaining traction among investors.

The Rise of Mixed-Use Properties: A Solution for a Changing Landscape

The traditional landscape of real estate, with its focus on purely commercial spaces such as offices and retail units, has been undergoing a transformation. The COVID-19 pandemic accelerated trends like remote work and online shopping, challenging the viability of these commercial-only spaces. In response, the concept of mixed-use properties has emerged as a strategic solution to adapt to these changes and ensure the continued success of the commercial sector.

Mixed-use properties offer a unique blend of residential and commercial spaces within the same development, providing diversification and long-term stability for investors. This approach not only caters to the evolving needs of communities but also addresses the growing demand for housing, making it a win-win scenario for investors.

England’s Mixed-Use Property Market: An Overview

To gain a better understanding of the mixed-use property market in England, Sirius Property Finance conducted a comprehensive analysis. Here are some key findings:

Available Stock and Regional Distribution

Currently, there are 5,201 mixed-use properties listed for sale across England, with an average price of £379,366. However, the distribution of these properties varies significantly by region.

• North East: Leading the pack, the North East boasts the highest proportion of mixed-use properties, with 1,252 listings, accounting for 24.1% of the national total.
• North West: The North West follows closely behind, representing 12.3% of the market.
• London: Despite its smaller share, London still holds a significant portion of the market, with 12.1% of the listings.

Conversely, the East Midlands and West Midlands have the lowest proportion of mixed-use listings at 6.8% and 7.6%, respectively.

Price Variations by Region

Unsurprisingly, the price of mixed-use properties also varies considerably based on location.

• London: As the most expensive region, London commands an average price of £992,450, which is 161.6% above the national average.
• South East: Properties in the South East are 38.3% above the national average.
• East of England: This region sees prices that are 4.5% above average.

Affordable Investments in the North East

While London boasts the highest prices, the North East presents an appealing opportunity for investors. Here, mixed-use properties are not only abundant but also incredibly affordable, with an average regional price of just £153,394, which is 59.6% below the national average. Other regions offering affordability include the North West (35.9% below), Yorkshire & the Humber (35.5% below), and the West Midlands (15.7% below).

Insights from Sirius Property Finance

Nicholas Christofi, the Managing Director of Sirius Property Finance, shares valuable insights into the current market dynamics:

“We know that the commercial property sector has faced challenges in recent years, exacerbated by the impact of the pandemic. The retail sector was already grappling with the rise of online shopping, and the shift to remote work further affected the demand for office spaces. At the same time, the housing shortage remains a significant issue.

As a result, mixed-use properties and developments have emerged as a strategic response to these challenges. They offer a way to create more homes while revitalizing city and town centers. The North of England, in particular, is leading the way in this mixed-use revolution, offering an abundance of stock at attractive prices.

Investors with a long-term vision can recognize the immense value these properties hold for the future. Additionally, the diversification of portfolios achieved through mixed-use investments provides protection against simultaneous voids, mitigating one of the most significant risks in property investment.”

Conclusion: Seizing Opportunities in England’s Mixed-Use Property Market

In a rapidly changing real estate landscape, mixed-use properties have emerged as a smart investment choice. They not only cater to evolving community needs but also address the demand for housing, making them an attractive option for investors. As our analysis has shown, the North East of England stands out as a hotspot for mixed-use properties, offering both abundance and affordability.

For investors looking to diversify their portfolios and mitigate risks, mixed-use properties present a compelling opportunity. As the market continues to evolve, staying informed and seizing the right opportunities will be key to achieving success in this dynamic sector. Whether you’re a seasoned investor or new to the game, exploring the mixed-use property market in England is a strategic move that could yield substantial returns in the long run.