Investors in the UK property market have something to cheer about! The market delivered 11.8 per cent returns to investors in 2017 though it was one of the most difficult years for the UK real estate sector.
Data released by global real estate services adviser CBRE showed that 2017 was a strong year for Commercial, Office, London Central, Retail, Industrial and other sectors. The Industrial sector outperformed the rest in 2017 by delivering 21 per cent returns as against Office (9.8 per cent), Central London (8 per cent) and Retail (8.6 per cent). This is the best year for the Industrial sector since 2014.
The overall capital value growth in 2017 was 5.9 per cent with the Industrial sector once again registering the highest at 14.6 per cent. Likewise, the rental value growth for 2017 was 1.7 per cent while the Industrial sector registered 5.7 per cent.
These statistics depict the strong fundamentals of the UK property market, which has been able to withstand the impact of Brexit in 2017. Investors have trusted the UK property market, and its reputation as a safe investment destination remains unchanged. Going by the trend, investors will continue to invest in the UK property market in 2018.
Despite a cautious and uncertain outlook at the start of 2017, the traditional end-of-year flurry of transactions rounded off a solid year for UK property, with double-digit returns well ahead of consensus forecasts - CBRE