The average property returns in the UK is expected to be around 4 per cent this year, global real estate services firm JLL has predicted.
This prediction is a welcome sign despite the recent political and economic developments in the UK impacting the property market. Interestingly, the strong fundamentals of the UK property market ensured the return of stability and restored the confidence of the investors.
JLL expects growth in capital values of property to take place in the prime markets. The secondary markets may not be that attractive for investors this year, but is expected to create opportunities for them in the long-term.
Another highlight of the prediction is the UK property fund, which JLL believes, could become popular in days to come. It expects the property funds to become attractive for investors if the occupier markets become resilient in the UK.
JLL has also placed its bets on adoption of advanced and latest technology in residential building construction by developers this year. It expects technology to play a big role in 2017, as the focus will be on smart buildings, incubators and accelerators.
Overall, the UK property market continues to hold promise and offers attractive returns to investors in the long-term.
Uncertainty around the outcome of Brexit looks set to bring a host of opportunities for real estate investors looking at the UK in 2017.