Demand for London real estate triggers recovery of broader market
Property experts say the increasing demand for real estate in London is spreading across the rest of the UK, leading to renewed confidence over the sustainability of the British economy.
Speaking at the European Public Real Estate Association (EPRA), Exane BNP Paribas property analyst Nick Webb said the strong performance of the London property market over the last few years has transformed the British market.
Not only this, he believes the pattern of a capital’s success having a nationwide effect could be mirrored in continental Europe – possibly boosting interest in green buildings and other forms of architecture.
2014 could be the first year of average rental growth since 2007
Cited by property-magazine.eu, Mr Webb said:
“Back before the financial crisis, UK commercial real estate started falling earlier, faster and harder than Continental European markets. We may see markets on the other side of the channel starting to take similar shape in recovery, but again lagging the UK on the way up.”
As reported by ipe.com, he went on to state that capital values have already broken their 18-month losing streak, something he attributes to a rise in consumer confidence and rapidly evolving supply chains.
“The retail property markets never suffered from the excessively high rents or strained affordability of the UK market and retailers have proved far more resilient to weakening sales,” he added.
Author: Richard Towey Date Written: 06 September 2013