UK commercial real estate expected to ‘perform solidly’ in 2015 | 29 December 2014
Britain’s office space market is predicted to remain strong in the coming year, according to a report from asset management firm, Schroders.
Low levels of development, plus a recovering economy is likely to see increases in demand that will mean rental growth stays at the top, writes propertywire.com. The gains will be felt most significantly in London, unsurprisingly, where rental growth was regionally the strongest in the UK in 2014.
Though the City and West End have for some time been popular locations for law, media, accountancy and tech firms, the report also highlights the less ‘traditional’ areas of Farringdon, Kings Cross and the South Bank as desireable.
The predictions comply with those made by DTZ Research earlier in the month, which claimed that city rental growth will hit double digits in 2015, according to property-magazine.eu. Demand for commercial property remains strong from both institutional and private investors, Ben Cook, DTZ’s head of UK inward investment said.
“For those seeking prime office assets above £200m, there are relatively few markets in Europe that offer the size and liquidity of central London,” he added.
The report from Schroders does mention several risks to this seemingly positive outlook, however, one of which warns that should economic growth not reach forecasts, rent rises might ‘stall rather than accelerate’.
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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