Current Market Update – January 2016

January 26, 2016

The Real Estate sector remains firm despite underlying macro concerns.  A shortage of quality stock remains a prominent theme in the market and with a continued supply/demand imbalance this continues to drive capital values higher.

The Q4 2015 RICS UK Commercial Property Market Survey shows a continued rise in occupier and investment demand, albeit the latest results signal a slight softening in the rate of increase .  Nevertheless, with supply failing to keep pace with demand right across the UK, capital values and rents remain firmly underpinned.

Commenting in the publication on the North West market, Andy Taylorson stated “Conditions remain relatively stable across the board.  Small freehold City Centre secondary offices have proved popular.  Permitted Development Rights for conversion to residential has led to a number of transactions.  Market demand for industrial premises remains strong due to a shortage in supply for both freehold and leasehold premises.  Secondary and tertiary retail markets remain volatile.  Investment yields remain firm due again to a shortage of demand evident.  Residential land values are under pressure due to the impact of Community Infrastructure Levy and high 106 costs imposed by local Planning Authorities”.