Knight Frank: EV Charging Boosts Real Estate Revenue
Knight Frank's latest report, EVs: The Everywhere Vehicle?, offers insights into the opportunities and challenges for real estate asset owners in the growing electric vehicle market.
As EV adoption grows in the UK, driven by policy shifts and rising consumer demand, the report highlights strategic pathways for property owners to capitalise on the need for EV infrastructure.
Knight Frank, a leading global real estate consultancy established in 1896, highlights the strategic role of EV charging infrastructure in maintaining and enhancing property value. With a network spanning 488 offices in 57 territories and more than 20,000 employees, Knight Frank highlights EV adoption as a key driver shaping the future of UK real estate.
Private EV ownership in the UK has dramatically increased over the past five years. The momentum is expected to intensify with Labour’s pledge to phase out internal combustion engine sales by 2030.
Despite the progress, significant barriers remain, including vehicle costs, charging infrastructure, driving range concerns and charging time.
The Climate Change Committee (CCC) estimates that 325,000 public charging points will be necessary across the UK to support widespread EV use. However, only 62,500 public chargers are in place and only 17% are classified as rapid or ultra-rapid chargers. Addressing the shortfall is crucial for the UK’s EV transition.
Identifying opportunities
- An in-depth analysis of EV infrastructure opportunities
- Metrics including household demographics
- A rundown of charger availability
- EV ownership figures
The findings pinpoint top areas for growth, including Trafford, East Riding of Yorkshire and Birmingham.
David Goatman, Global Head of Energy, Sustainability & Natural Resources at Knight Frank, emphasises the strategic importance of the data: “For property owners, identifying assets in their portfolios well positioned for charger installation could present valuable income opportunities.
"By anticipating charging demand, owners can strategically position their properties to meet evolving future requirements.”
EV chargers as revenue streams
Knight Frank's report outlines how EV chargers can become lucrative revenue streams for property owners.
Charging infrastructure in retail centres, workplaces and residential developments enhances property value, attracts premium tenants and generates consistent income.
- Charging fees: Property owners earn between US$3,180 (£2,500) and US$7,630 (£6,000) per bay annually.
- High-traffic locations: Motorways and trunk roads are prime spots, as 30% of key roads lack DC charging, creating substantial opportunities for rapid charger installations.
Overcoming grid and planning challenges
While the potential is clear, grid constraints and complex planning processes pose significant hurdles.
Knight Frank's report advises property owners to proactively assess grid import and export capacities and proactively secure connections.
“Important strides have been made in transforming the grid connection process, including proactive queue management and the ‘first ready, first connected’ policy. With Labour’s commitment to decarbonising the grid by 2030 and creating Great British Energy, further reforms are expected to address these power and infrastructure challenges effectively.”
Knight Frank’s analysis highlights that EV infrastructure is more than necessary for sustainability; it's a transformative opportunity for real estate owners.
By investing in EV charging solutions, asset owners can position their properties to align with future mobility trends, ensuring relevance in a decarbonised economy.
The report provides a roadmap for overcoming challenges and highlights the revenue potential of EV charging, making it an essential consideration for forward-thinking real estate stakeholders.
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