The Pros and Cons of Investing in California Real Estate
Investing in California property has always felt a bit like hopping onto a roller coaster. Exciting, full of potential, occasionally nerve-racking, and sometimes a little unpredictable. Still, people are drawn to the state’s real estate market for good reason. Whether you are new to property investing or you have been doing this for a while, it helps to take a clear look at both the upsides and the drawbacks before diving in. Why California Continues to Attract Investors California has an undeniable pull. Some of the biggest reasons investors explore the market here come down to population, job opportunities, and long term appreciation trends. Cities like San Diego, Los Angeles, and San Francisco offer strong demand for rentals, and that naturally keeps property values sturdy most of the time. Another perk is the diversity of markets within the state. You can find everything from luxury coastal homes to more affordable inland properties. This gives investors at different levels room to find something that fits their budget and goals. There is also something reassuring about investing in a state with such a strong economy. Even when one industry slows down, others tend to pick up the slack. Tech, entertainment, agriculture, tourism, and biotech all help keep demand stable. The Potential Downsides to Keep in Mind Of course, no market is perfect. California has some challenges that deserve attention. The first and most obvious one is the cost of entry. The state’s median home prices are much higher than the national average. Many investors find themselves needing larger down payments or partnering with others to make deals work. Another factor that surprises newcomers is the regulatory landscape. California has strict tenant protections, environmental rules, and building codes. These rules are designed to protect residents, but they can add complexity to property management. It is not impossible, but it is important to understand the rules before you buy anything. Then there are the taxes. Property taxes, combined with state income taxes and potential capital gains taxes, can feel heavy unless you plan ahead. This is why many professionals recommend learning about tax strategies early on. The right structure can make a noticeable difference in your yearly returns. Opportunities for Growth Despite the Challenges Even with the obstacles, California still offers opportunities if you know where to look. Some investors focus on long-term rental markets. Others explore short term rentals, although cities vary widely in their rules. There are also pockets of the state that have been growing rapidly, such as the Inland Empire and parts of Sacramento. This is where strategic planning matters. For California real estate investors, understanding how to maximize tax benefits and depreciation can go a long way. Many turn to cost segregation because it can accelerate deductions and improve cash flow. Is California Still Worth It? The big question everyone eventually asks is whether buying property in California still makes sense. The honest answer is that it depends on what kind of investor you are and how much uncertainty you are comfortable with. Some people enjoy the challenge. They like the idea of owning something in a place that stays busy and full of life. Others want a calmer market where the numbers feel predictable from day one. If you lean toward long-term thinking, California can still be appealing. Housing demand rarely takes a real break, and the state keeps drawing new residents thanks to its job market and lifestyle. Even when prices wobble, they tend to settle in a stronger position over time. That steady pressure on demand is one of the reasons people keep coming back to this market. What really matters is finding a strategy that fits your goals. For some, California is a long game. For others, it is a market they admire from a distance. There is room for both approaches, and neither one is wrong.
From Vacant Office to Premier Inn: Whitbread Fast-Tracks Phoenix House Conversion in Vauxhall
Work to convert the vacant office into a 180-bedroom Premier Inn hotel begins just eight months after securing the landmark location opposite Vauxhall Underground Station Construction work has begun to convert Phoenix House in Vauxhall, London into a 180-bedroom Premier Inn hotel – just eight months after the parent company to the UK’s largest hotel business agreed terms on a lease for the site. The high-profile location opposite Vauxhall Underground Station was acquired by Whitbread plc, which owns Premier Inn, as part of its London expansion program. In an innovative arrangement, Whitbread agreed to lease the 10-storey 7,469 sqm former office building from Lambeth Council, the virtual freeholder, and lead the conversion of the space into a latest format Premier Inn. The 30-year agreement between Whitbread and the Council was signed in March 2025 and planning permission for the conversion was secured 20 weeks later in July 2025. Now, just eight months on from signing the contract, Whitbread has full control of the building and has started strip-out works today [17th November] – with the target to open the new hotel in early 2028. Jonathan Langdon, Senior Acquisition Manager for Whitbread, said: “As an operating hotel business our goal is to open our pipeline development sites as quickly as possible for our customers. Thanks to a successful partnership with Lambeth Council, we have been able to acquire a fantastic hotel location, secure planning, and move into construction in just eight months, showing what’s possible when everyone comes together. “We have been looking for a suitable location for Premier Inn in Vauxhall for at least ten years. In a little over two years’ time, we will be welcoming customers to a sensational hotel location, literally opposite Vauxhall Underground Station, and delivering the new location in a very sustainable way through the conversion of a former vacant office building. There are enormous benefits to expanding our footprint in this way, and we are actively looking for similar opportunities across the capital as we continue to grow.” Phoenix House was formerly occupied by Lambeth Council before being vacated as part of its award-winning Your New Town Hall scheme. This wide-ranging project involved reducing Lambeth Council’s core office buildings from 14 to two, with further community benefits including 219 new homes for rent and sale. Whitbread intends to bring its award-winning hotel proposition to the building, including its popular enhanced Premier Plus rooms and an ancillary guest-focused restaurant on the first floor. Around 25 permanent hospitality jobs will be created on opening, with recruitment expected to begin in autumn 2027. Berkshire based Redhammer Demolition Limited has been appointed to begin the strip-out conversion works which are due to complete by Easter 2026. Whitbread is currently in discussions with several contractors for the fit-out work. The redevelopment of Phoenix House forms part of a city-wide expansion plan for Whitbread as it works to address an undersupply of affordable hotels in the capital. It currently operates more than 100 Premier Inn and hub by Premier Inn hotels within the M25 – including five Premier Inn’s within the borough of Lambeth, the newest of which opened at Lambeth Road in January 2025. Building, Design & Construction Magazine | The Choice of Industry Professionals
Glencar breaks ground on flagship Sustainable Materials hub at Atom Valley
Glencar has been appointed by Wilson Bowden Developments to deliver the first major project at Atom Valley, with work now under way on the new Sustainable Materials and Manufacturing Centre (SMMC) in Rochdale. The 43,500 sq ft facility will provide a cutting-edge environment for collaboration, research and development in sustainable materials and advanced manufacturing. Designed as a flexible, innovation-focused space, the centre will bring together businesses, academics and technology partners under one roof to accelerate low-carbon solutions and next-generation production techniques. Crucially, the SMMC is intended to act as a catalyst for a wider innovation cluster across the Atom Valley site, supporting high-value jobs, investment and long-term industrial growth in the region. The facility will form an important part of the evolving Kingsway Business Park offer, complementing existing occupiers and strengthening the area’s reputation as a hub for advanced industry. Tom Kearsley, North Regional Director at Glencar, said the business was pleased to be working once again with Wilson Bowden and the wider project team to deliver what he described as a unique, forward-looking facility. He highlighted the opportunity to support “future-facing innovation” by creating a building that encourages collaboration between different disciplines and sectors. Henry Henson, Development Manager at Wilson Bowden Developments, described the start of construction as a landmark moment for the scheme. He said the SMMC would play a central role in the continuing success story at Kingsway Business Park and that the project team was looking forward to turning the vision into reality on site. The Sustainable Materials and Manufacturing Centre is scheduled for completion in September 2026, marking an important early milestone in the development of Atom Valley as a nationally significant innovation location. Building, Design & Construction Magazine | The Choice of Industry Professionals
Arada to acquire majority stake in £2.5bn Thameside West development
Unlocking one of London’s largest and most connected new waterfront neighbourhoods… Arada, the UAE’s fastest-growing master developer, announces that it has agreed the acquisition of an 80% stake in Thameside West, a landmark waterfront mixed-use development located at the western end of London’s Royal Docks. Master-planned by Foster + Partners, the vibrant new urban destination will deliver at least 5,000 homes, with half of the site dedicated to green space and a kilometre of active waterfront. Boasting unrivalled transport links, the integration of air, road, rail, river and tunnel links makes this one of the most connected sites in London. Spread over a 47-acre area – twice the size of the Hudson Yards mixed-use development in New York – Thameside West represents one of Europe’s largest and most strategically important regeneration opportunities, with a Gross Development Value (GDV) of £2.5 billion. It occupies central London’s longest stretch of undeveloped riverfront, with views across Canary Wharf and Greenwich Peninsula. Already awarded consent, Thameside West will see 1,000 homes delivered in the first stage of the project, with construction set to begin in 2027. The acquisition from private developer Keystone represents Arada’s second large-scale investment in the London residential market in the space of less than two months, following its purchase of local developer Regal in September. Arada will work alongside the London Borough of Newham, Greater London Authority and Transport for London to transform this former industrial site into a vibrant, new neighbourhood. Keystone’s vision and sustained commitment have been instrumental in progressing Thameside West to this stage, laying the foundations for one of London’s most ambitious masterplans. GLA Land and Property Limited (“GLAP”), as the other major landowner, will work closely with Arada to unlock this significant project. Thameside West is one of the most well-connected sites in London and benefits from the recently completed Silvertown Tunnel, Custom House station (Elizabeth, Jubilee and Docklands Light Railway (DLR) lines), City Airport, and the IFS Cable Car. The site also connects the Lea Valley Regeneration Area and the wider Royal Docks, and Arada aims to additionally deliver a new DLR station, in partnership with Transport for London. His Highness Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, said: “Our entry into this market was grounded in our unwavering faith in London and its attractiveness as one of the world’s leading capital cities. At the time of the Regal acquisition, we articulated our ambition to scale our London residential pipeline to 30,000 units over the next three years, and we have swiftly delivered on growing that pipeline. Thameside West represents a unique opportunity to create a landmark riverside development, and we look forward to working with our partners and utilising our long-standing track record in large-scale, amenity rich residential schemes to unlock the delivery of new housing for London.” Tom Copley, Deputy Mayor for Housing and Residential Development said: “I am delighted that Arada is investing in London to transform Thameside West – one of the key sites within the Royal Docks. This really is a fantastic example of how we can unlock London’s potential to deliver the homes our city so urgently needs. “Working together we will be able to deliver at least 5,000 new homes, 35 per cent of which will be affordable as part of a thriving new neighbourhood in the heart of this historic part of East London. “This is a landmark moment as we continue to push ahead with our plans to return the Royal Docks to its former glory and create a better, fairer, greener London for everyone.” Lord Norman Foster of Thamesbank, Founder and Executive Chairman of Foster + Partners, said: “Thameside West is a place where architecture, nature and infrastructure come together in balance. The stepped design ensures exceptional views from every building, while the integration of air, road, rail, river and tunnel links makes this one of the most connected sites in London. Half the master plan is dedicated to green space, including more than a thousand trees and a kilometre of active waterfront, creating a setting that is both restorative and dynamic. Our goal is to build a truly inclusive community – one that brings opportunity, sustainability and vitality to the heart of London.” Giorgio L. Laurenti, Chairman of Keystone, said: “One of the most significant development opportunities in Greater London, Thameside West is a transformational destination designed to deliver thousands of new homes while generating substantial economic and social value for the wider community. With Arada, we have found an ideal and trusted partner, with tried-and-tested experience in large-scale urban mixed-use districts, to work with as we move closer to bringing this landmark project to life.” The acquisition of Thameside West increases Arada’s London development pipeline to 15,000 homes, supporting its ambition to triple this to 30,000 units over the next three years, building on a 30-year track record in the capital’s real estate market. Building, Design & Construction Magazine | The Choice of Industry Professionals
Green light for major Tiller Road Estate transformation on the Isle of Dogs
A major regeneration of the Tiller Road Estate on the Isle of Dogs has taken a step forward after Mount Anvil and social landlord Riverside secured planning permission for a comprehensive rebuild of the site. Approved by Tower Hamlets Council, the scheme will deliver 411 new homes in East London, replacing three existing blocks that currently provide 72 homes. The new development will include 137 affordable homes, with the remaining properties offered through a mix of private sale and shared ownership, broadening the range of housing options available in the local area. Designed by PRP Architects, the proposals will dramatically reshape the estate’s skyline. The existing low-rise buildings will make way for two slender towers of 21 and 25 storeys, alongside two mid-rise blocks rising to 6 and 9 storeys. The aim is to create a more efficient use of land while introducing modern, high-quality homes and improved public realm. Beyond simply increasing housing numbers, the project is intended to support long-term neighbourhood renewal. Estate regeneration schemes of this kind typically deliver upgraded homes that are better insulated, more energy-efficient, and designed to meet contemporary space and accessibility standards. Residents can also expect improved landscaping, safer and more attractive routes through the estate, and communal areas that encourage a stronger sense of community. The Tiller Road scheme is the latest in an expanding partnership between Riverside and Mount Anvil. Together, the organisations are now working across four London locations, including Bellamy Close and Byng Street on the Isle of Dogs, Friars Close in Southwark, and 262 affordable homes at Royal Eden Docks. Marcus Bate, partnerships, planning, communities and sustainability director at Mount Anvil, said the approval marked an important milestone for the joint venture. He noted that the partnership now has more than 1,000 homes under development across its London projects and highlighted the long-term benefits expected for Tiller Road residents. The regeneration of Tiller Road Estate is intended to leave a lasting positive legacy, providing a new generation of homes and creating a more liveable, sustainable and inclusive place at the heart of the Isle of Dogs. Building, Design & Construction Magazine | The Choice of Industry Professionals
HLM Architects Expands UK footprint with Launch of New Studio
Award-winning architecture practice HLM Architects – operating studios across England, Scotland, Wales, Ireland and Northern Ireland – is expanding its UK footprint with the launch of a new design studio in Plymouth. Responding to growing demand across the South West, the move strengthens HLM’s national presence and becomes its seventh location, joining Sheffield, London, Cardiff, Glasgow, Belfast and Dublin. Located in creative workspace Alma Yard, the new studio marks a return to Plymouth for HLM, which operated an office in the city until 2018. The practice has previously designed several acclaimed projects in the area – including Whitleigh Education Campus, Chamberlain House at Plymouth Science Park, the Marine Station at Coxside, and Brannell School in Cornwall. HLM has continued to play a pivotal role in the South West in recent years, delivering strategic support to the Defence Infrastructure Organisation, the Royal Navy at HMNB Devonport, and the wider defence sector across the region. The new Plymouth studio will be led by Kay Hanson, a designer with deep ties to the region. Kay spent 14 years at HLM earlier in her career and lectured at both Arts University Plymouth and University of Plymouth. She recently joined the South West Women in Construction committee, further strengthening her ties to the local construction industry. Commenting on her appointment as Studio Director, Kay said: “I’m delighted to be back at HLM and relaunching our Plymouth base. All of our studios are rooted in their respective communities, and this will be no different. I’m extremely passionate about the South West and looking forward to leading a team that can grow and thrive here. “We believe that architecture is most impactful when it’s embedded in place, and this studio will offer talented individuals the chance to build their careers locally, within a practice that values both community engagement and design excellence.” Michael Scherdel, Managing Director of HLM Architects, added: “We’ve seen a significant rise in opportunities across the South West, so returning to Plymouth feels like a very natural step for the business and reflects our confidence in the region. “With major investment and regeneration underway, we’re looking forward to playing a role in shaping the region’s future and continuing to build on our strong relationships here.” Building, Design & Construction Magazine | The Choice of Industry Professionals