Estate Benchmarking Survey

Estate Benchmarking Survey
 
Rural Estates Represent A Good Investment

23 November 2015, by Ian Bailey

Rural estates continue to perform well compared with other asset classes.

 

Rural estates continue to perform well with an average total return for ‘all let property’ in 2015 of 8.3%, the sum of a net income return of 1.4% and capital growth of 6.9%. Although the investment performance has slipped slightly from the annualised figures of 9% and 10% over the past five and ten years respectively. It has performed well compared with other asset classes, especially when considering the additional tax and ownership benefits.

Over the past few years the overall performance has been driven by the agricultural and commercial assets.

As noted in Estate Incomes and Agriculture & Residential the variety of assets on rural estates is fundamental to its income and investment performance. Although income generation and retention of the core estate are the key objectives for many estate owners and managers, we believe it is useful to understand the investment performance of the assets especially in the context of alternative investments.

GRAPH 5

Annualised Total Returns by Rural Estate Sectors

 
Graph 5

Source: Savills Research

placeholder

Key Contacts

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

Sophie Tidy

Sophie Tidy

Director MRICS, FAAV
Estate Management

Savills Oxford

+44 (0) 1865 269 162

 

Subscribe to Savills research

 

Would you like to be notified via email about new research?