The Industrial sector will continue to drive property returns in the UK in 2017, well-known property services provider Colliers international, has predicted. It summarised that the UK property will continue to remain stable in 2016 after recovering from the setbacks during 2016. The UK property market is still attracting global investors owing to strong fundamentals of the real estate market.
“By all accounts, year-end property metrics came ahead of most expectations, including ours, with yields resilient in the face post-EU referendum uncertainty. Economic performance appears to have been back loaded, with activity rallying in the latter months as consumers continued to spend, despite downcast predictions,” Colliers said in its latest report “Real Estate Investment Forecasts for Q1 2017.”
The returns from the Industrial sector in 2017 is forecast at 7.6 per cent, including 5.4 per cent income return and 2.1 per cent capital growth. This prediction is higher than the growth in returns experienced in the Industrial sector last year. The retail sector is also expected to witness growth at 3.5 per cent when compared to 2016.
Over the next five years, the Industrial sector in the UK is expected to outperform all other property sectors in terms of returns, thereby making it the most preferred investment segment. The occupier demand has gone up significantly in London and the South East.
An upbeat and consumer-driven economic performance galvanised property sentiment and rallied activity in the final quarter.