Hard hats, first fixes and construction inspections might not appeal to all real estate investment firms. But there is a growing contingent of managers across Europe who are embarking on higher-risk development investments across a number of sectors, in search of income and much-needed stock.

Figures published on the UK market in October by advisory firm CBRE have highlighted the growing demand for property development projects, or forward funding. It said forward funding had accounted for about 85 percent of UK residential build-to-rent activity in the third quarter of 2019, with total build-to-rent activity reaching £743 million (€863 million), up from £359 million (€417 million) in the previous quarter.

According to CBRE, the largest UK deal in the third quarter was Mitsubishi Estate’s £150 million (€174 million) forward funding of the former Royal Mail site in Nine Elms, London — the family office’s first UK build-to-rent deal.

All in all, mor