- 1 Minute Read
- 10th January 2013
Deloitte forecasts optimistic outlook in UK commercial property markets
Falling UK commercial property prices will recover and begin to rise towards the later part of the year, according to a report by Deloitte, the UK based financial services company.
The report, titled “Real Estate Predictions”, says the downward trend in commercial property prices will bottom out in 2013, with the latter part of the year being marked by rising prices.
Although improvement will not be seen until the later part of the year, 2013 is expected to herald the beginning of the long awaited recovery in UK commercial property markets.
Deloitte’s predictions correspond with the Halifax’s optimistic outlook in residential property markets, citing the return of confidence among businesses and investors as a reason.
Andy Rothery, Deloitte’s head of retail estate, believes there will be increased investment from overseas agents, driving the predicted recovery in the UK’s commercial property markets in 2013.
“The inflow of foreign capital buying real estate is set to exceed that recorded in 2012; coming from both established players and more new entrants,” he said.
While the report concurs the prediction may be ‘heroic’ under the current economic conditions, it points to compelling indicators in the market supportive to the forecast.
Anthony Duggan, partner and head of research at the firm, gave detailed analysis in the report, outlining why he believes the forecast’s projections are correct.
“We believe that there are enough compelling reasons to commit this forecast to paper,” he said.
Concluding, Mr Duggan commented: “We believe there will be value to be found outside the relatively narrow focus that we have seen most investors concentrate on over the last few years.
“This should drive a widening of the UK market and so stabilisation in pricing. However, this will not be at the expense of prime property which will undoubtedly continue to perform well as it maintains its attraction to a deep and diverse range of investors looking for stable, secure, long-income stream returns.”