With 2016 coming to a close, analysis of the UK property market is being undertaken by various agencies while Savills has predicted a significant increase in international investments over the next 5 years in commercial assets.

In its report titled “A careful balance of risk and return': What does 2017 hold for the UK real estate investment market?” Savills observed that the political developments this year will lead to “caution and risk aversion” among investors. However, overall, there is a positive outlook for the UK property market across residential, commercial, rental market and development opportunities.

Savills foresees record levels of international investments to flow into commercial properties outside London over the next 5 years, as investors continue to show faith in the UK real estate market. Logistics warehouses and office assets, including refurbished workspaces, are likely to benefit from this expected investment.

It has also predicted that tenants might seek greater flexibility while signing lease contracts. However, the demand for office space will continue to rise and the rents are expected to increase correspondingly. All these developments will lead to improvement in capital growth, adding value to the UK real estate market in the long-term.

As we enter 2017 in a few days, these findings offer an optimistic view of the UK property market.