Analysis · Development & investment
Build to rent or for sale: comparing options on one basis
Why tenure options need to be compared on peak equity and return, not headline value.
Build to rent and for-sale schemes are often compared on gross development value. That comparison leaves out most of what matters to an investor.
The two routes differ in specification, amenity, phasing, finance structure and the timing of cash flow. Each changes peak equity and the shape of the return.
A like-for-like comparison sets both routes out on the same basis, so the choice reflects the investor’s capital and appetite for risk.
For more on each route, see build to rent and homes for sale.