Commercial property sector to grow and diversify in 2013 | 7 January 2013
The UK’s commercial property sector is set to recover in the latter part of 2013, with investors looking outside of core markets, deloitte.com reports.
New figures from researchers Deloitte found that whilst the first quarter of 2013 may not post particularly positive figures, the market should pick up by the end of the year. Much of this turnaround, the analysts claim, will come from a shift in focus from prime properties and into a much broader scope.
Deloitte also echoed claims that much investment in the UK market would come from foreign markets, with some £20 billion worth of funding coming from overseas. Furthermore, this will see deals coming not only from large-scale, existing players but also smaller investors new to the market. These totals will see the 2013 commercial property market comprehensively outstrip totals achieved in 2012, Deloitte believes.
Whilst forecasters admitted construction activity may remain low, sizeable drives from the higher education sector could keep totals at reasonably healthy levels.
Commenting on the figures, Deloitte’s head of real estate research, Anthony Duggan, told freshbusinessthinking.com that it’s not only investment in the market that looks set to change, but also occupier requirements.
“Changes can be seen in the office market where a need to reduce build costs alongside flexible working practices such as activity-based working, cloud computing and ‘bring your own device’ schemes are altering the way that office buildings might be built in the future,” Duggan said.
“Working from home practices, wireless technologies and hot-desking schemes are also reducing the amount of space needed per worker, pushing a change in occupier requirements.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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