Build to rent (BTR), known elsewhere as multi-family residential, is a class of real estate assets encompassing institutionally owned residential buildings, where individual units are rented to residents rather than sold to individuals (as in the traditional BTR (build to sell) model).

 The cash flow from such projects differs substantially from traditional BTS as revenues flow throughout the life of the project rather than being received up front, while the owner faces maintenance and staffing costs.  BTR sector is a nascent sector in the Australian commercial property market as tax incentives in the residential property market have historically favoured capital gains over income.

Australia's build-to-rent market is about to experience significant and rapid growth, with the number of units expected to jump almost tenfold to 16,000 by 2027.

Cushman & Wakefield research found the burgeoning BTR sector, currently worth about $9.6 billion based on the 40 projects under construction, is "set to explode" over the next few years.
"Build-to-rent in Australia has reached a turning point," Cushman & Wakefield's director of metropolitan markets Marcus Neill said.
"The number of constructed units is set to double each year to 2025 and grow nearly tenfold over the next five years".
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Overview
Build to rent (BTR), known as multi-family residential
in the Unites States and Europe, is one of the fastest
growing commercial real estate sectors in Australia.

BTR assets are institutionally owned residential
complexes; most commonly the developer will retain
ownership for a period of between 7 and 10 years.

Individual units in these complexes are rented to
residents rather than being sold to individuals (to
either rent or as an investment property), as in the
more common build to sell (BTS) assets.

     Contents
4 Executive Summary
6 Overview
8 Residential Investment in Australia
12 The Current BTR Landscape in Australia
18 Obstacles to BTR in Australia
• Tax
• Cost
• Financing
23 Growth Potential for BTR
26 Summary

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