Channel Islands investment opportunities remains strong

The Channel Islands ’ property market has enjoyed a firm copulate of years. average residential property prices have increased well, with Jersey seeing the largest rise : up 18 % from £567,000 in Q4 2020 to £673,000 in Q4 2021, compared with a 9 % ascend in the UK over the like time period. Jane Niles
supply has retentive been tight, and with a growing count of people and businesses relocating and investing offshore, it is alone going to get mean .
In the same vein, a oddity of the Guernsey caparison market is that entirely 1,596 homes are ‘ clear commercialize ’, meaning they can be occupied by persons not entitled to live in ‘ local market ’ accommodation. As a limited provide, they are valued accordingly, which has contributed to a major rise in prices – earlier this class the most expensive home always sold in Guernsey reached more than £15m. demand in all aspects of the marketplace has been so high that developers in Jersey have had potential buyers queuing overnight for the launches of flats in St Helier.

The investment opportunity is besides increasingly attracting attention. Investors can acquire a commodity agency, let to a potent tenant with an eight to 12-year slant average unexpired lease term, off a yield of circa 6 % versus 3 % to 4 % for the same characteristics in London, delivering the equivalent tenant at better rate. This has seen external investors attracted to the Channel Islands, complementing domestic clients who additionally invest and develop UK and Channel Islands commercial real estate .

The Channel Islands ’ attraction as stable investment jurisdictions is clear

On the demand side, this remains solid, with offices with large floorplates and BREEAM ‘ Excellent ’ ratings scarce in Jersey and Guernsey. Often grade-A space is delivered through the renovation of grade-B and grade-C quad.

The Channel Islands ’ attraction as stable equivalent investment jurisdictions is clear. With a Standard & Poor ’ s recognition fink of AA-/A-1+ for both islands and an estimate GDP of £3.25bn in Guernsey and £4.52bn in Jersey, the islands ’ condition as globally recognised offshore finance economies is predicated on their first professional services, robust regulative regimes, tax disinterest, skilled workforces and agile, pro-business governments .
similarly, the appeal of UK real number estate is a firm as ever for offshore investors and we have supported many clients in accessing investment opportunities across multiple real estate segments throughout lockdowns and beyond.

Despite their island status, the Channel Islands seaport ’ triiodothyronine been immune to the turbulence caused by the pandemic. For us, adaptability and close customer relationships have been winder to supporting clients both on and offshore. Navigating tenant tension, halted developments and delivering on hearty opportunities to invest in the strongest market volumes seen in recent times, we and our offshore-structured clients have been busy .
In 2021, the Investec Channel Islands team had a record class, providing more than £150m of investment and growth finance for Channel Islands and UK very estate. We navigated the economic consequences of Covid in a way that compared favorably with early jurisdictions. As increasing amounts of external money eyes up the local market, and with its appeal as an offshore legal power vitamin a impregnable as ever, we are bullish on the mentality for 2022 .
Jane Niles is head of real estate, offshore, at Investec

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