Wales is an increasingly attractive location for property investment. The country boasts more affordable property than many other parts of the UK, along with gorgeous landscapes and diverse investment opportunities. What’s not to like?
As easy as it is to choose Wales as your ideal investment location, what’s much more difficult is deciding what kind of property investment to make. In 2024, there’s more diverse opportunities for buy-to-let than ever before with exciting trends taking over the property market such as build-to-rent, off-market investments, purpose-built student accommodation, and many more.
In this article, we’re going to explore one of the hottest trends in Welsh property investment – off-plan properties.
What is Off-Plan and Why is it Growing in Popularity?
New build developments have many advantages over buying older properties. Firstly, they are popular with tenants thanks to their modern and stylish designs. From the point of view of an investor, the appeal of new builds lies in lower maintenance costs and a simple and streamlined buying process. They are also likely to be more energy efficient when compared to older buildings.
So what’s the downside? Probably the biggest disadvantage is that these shiny new homes usually come with a much larger price tag. This larger initial investment can be intimidating to newer investors. More expensive property can make an investment less lucrative and have a negative effect on returns.
This is where the appeal of off-plan property comes in. If you want to take advantage of the rising demand for new builds while still getting a discount on your investment, off-plan is the way to go.
Off-plan investment means investing in a property while it is still in the planning or construction stage. By investing earlier, you can acquire a property at a cheaper rate than the usual market price. Developers sometimes offer incentives to investors to make the investment even more worthwhile such as discounts, rental guarantees, and furniture packages. So Why buy property in Wales? Read more in our free guides.
Why Choose Wales for an Off-Plan Investment?
k to Wales for an off-plan property investment?
k to Wales for an off-plan property investment?The affordable property prices in Wales have led to it becoming a popular destination for buy-to-let. If you take a look at the Land Registry figures, the average house price in the UK is £287,782, and the average price for Wales is much lower at £214,100.
The most major cities in Wales are Cardiff, Newport, and Swansea. These are all popular places for buy-to-let investments. Opportunities for off-plan investment are more likely to come about in major cities that are popular with renters and have good potential for capital growth.
Parts of Wales have also been identified as high yielding areas for buy-to-let investments. This includes Blaenau Gwent and Neath Port Talbot.
Wales is an attractive and popular place to live, offering a strong job market, convenient amenities, and cultural activities. Even those who live in the cities are never too far from the tranquil Welsh countryside. As an in-demand place of residence, it is likely that buy-to-let investors in Wales will find consistent rental demand, a key consideration when looking at off-plan property investment.
Wales is known as a great place for targeting student renters, as investing in off-plan student accommodation is growing in popularity. The country is home to some of the UK’s top universities, attracting well over 100,000 students every year. Cardiff University is the largest in Wales and is part of the Russell Group, so its global reputation draws students from all over the country and abroad.
Wales is also a good place to consider for holiday letting property investments. Wales has a strong tourism sector and some investors get involved in off-plan with the intention of listing their property on AirBnB or similar websites. Holiday letting is an increasingly popular investment strategy for property investors as depending on the location, the returns can be even higher than renting out a property long-term. There are lots of providers of properties for sale in Wales from Zoopla to Rightmove.
How to Find the Best Off-Plan Investment Opportunities in Wales
If you’re considering an off-plan investment, there’s some things to consider in order to find the best opportunities on the Welsh market.
Like any property investment, location is one of the most important things to consider. Major cities are likely to be the best bet, where young professionals and students (the people most likely to rent) are in big supply. In Wales this could be Cardiff, Newport, or Swansea.
Apart from areas with strong rental demand, it’s also useful to look for cities and towns with promising potential for capital growth. Regeneration is one indicator of this, suggesting that properties in a certain area will be more in-demand in the future and likely to rise quickly in value.
But there are also precautions to take that are specific to off-plan properties.
Unlike already completed properties, it’s imperative to research the developer of the off-plan property thoroughly, making sure to check their track record and portfolio to make sure they are trustworthy and reliable.
For off-plan property investment opportunities in Wales, you can research online or save time by contacting a local property company or estate agent such as Britannia Estate Agents.