Weekly round up from some Real Estate news
Transport in the 21st Century
Flying to take over Urban Transport?
Uber aims to get VTOLs (Vertical Take-Off and Landing) commercial operations up and running by 2023 with test flights expected from 2020. VTOLs put simply will be flying Uber's, with on-demand aviation in urban areas. Uber claims that major benefits will include low infrastructure costs compared to land travel whilst the flights would also not be following fixed routes. The aim will be to replace land transport and helicopters, as a more efficient, less polluting, and cheaper version for mass-scale use.
The main issue to consider will be ride safety, noise distractions, vehicle design and performance as well as emissions. The firm will need to consider potential issues such as locating take-off and landing sites, routing, charging, adverse weather conditions, customer experience as well as economic viability.
Uber does have competitors; to name a few, Airbus and Joby Aviation. Which innovators will emerge as key players in the market? Can we expect to be in flying taxis within the next few years? Time will tell.
M&G Suspends its UK Property Fund
Move comes amid issues in the retail market and Brexit uncertainty
The fund, the biggest UK property fund (£2.5b), is the first fund to suspend its withdrawals since the 2016 referendum. The company statements reads: “M&G believes it will best protect the interests of the Funds’ customers by applying a temporary suspension in dealing”. The firm said the speed at which investors were requesting their money back was greater than the speed at which they could sell their properties. The fund holds 37.5% of its portfolio in retail (warehouses, shopping centres and outlets). Since the firm's decisions, its stock price has decreased by 6.5% (as of 08.12.'19).
It remains to be seen to what extend the temporary suspensions is truly due to Brexit and retail woes, or whether the firm has been making the wrong calls. Will any of their peers follow suit?
In other news, Brockton Capital & Oxford Properties have sold the "Post Building", London to Pontadegea for an estimated £610 billion, representing a net initial yield of 3.95% for the 98% leased 300,000 sq ft development.
When can we Expect Keys to be Outdated?
Idea of the week
New developments already use this, whether it be by using pin codes, finger prints or fobs. The issue lies with the smaller, more traditional houses or offices. That is where the gap lies.
When... now. How... From the cheaper end of codes to the more expensive facial recognition. Who... entrepreneurs, salesmen, agents, landowners. Or anyone who takes the initiative and recognises this.