Continued recovery predicted for UK commercial property market | 29 January 2014
The UK commercial property market is set to build on the recovery that took place throughout 2013, according to propertywire.com.
Real estate firm Savills claims in a new report that there was a “robust pickup in tenant and investor demand for all types of commercial property” in the capital last year. But the firm has gone one step further for 2014, when it predicts investor interest will widen to cover regional cities, regional malls and distribution hubs across the country.
The report, ‘Key Themes for UK Real Estate in 2014’, claims: “Risk averse international investors will continue to be heavily biased towards the capital city, but some will be tempted to the regions by higher yields and less competition.”
It continues: “The more risk embracing investors will be looking to capitalise on the historically wide spread between London and regional yields, as well as the even wider spread between prime and secondary.”
The main reasons for this recovery, according to the firm, is the improving economy and increased confidence among UK businesses. Independent reports back this logic – the bbc.co.uk highlighted yesterday that the UK economy is growing at its fastest rate since 2007 (the economy grew by 1.9 per cent last year, according to data from the Office for National Statistics (ONS)).
Houses in the private rented sector are set to be a particular target for investors over the next five years. It is claimed that the sector will grow by one million in this period, according to Savills.
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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