Property experts at global real estate advisor Colliers International have some predictions for what the UK property market can expect in 2017. After the drama of 2016, the company expects a “somewhat uncertain 2017”…but also expect plenty of opportunity, too.
1. Investment volumes will improve
UK property volumes will recover slightly in 2017 as investors see through Brexit uncertainty and will exceed £50 billion.
2. Investor base will widen
Richard Divall, head of EMEA capital markets at Colliers: “With sterling remaining competitive, further new entrants, particularly from Asia, are expected to help support the UK market. As has been the case for some years now, the liquidity and transparency offered by the UK will continue to attract global institutional money as allocations to real estate increase to above ten per cent of assets under management.”
3. The UK will retain its safe-haven status
Mark Charlton, head of research and forecasting at Colliers: “U.S. foreign and economic policies will cause substantial shifts in global capital flows with considerable capital flight from emerging markets and from markets with increased political uncertainty. The UK will see increased inflows as global instability enhances the UK’s safe-haven status.”
4. Recovery in oil prices will provide a boost for Scotland
Douglas McPhail, head of office, Glasgow at Colliers: “The SNP will come under increasing pressure to focus on its “day job” rather than doom mongering over Brexit. A recovery in oil prices will benefit the Aberdeen economy and regional property market.”
5. Total returns will recover, but slowly
Martin Mahmuti, associate director of research and forecasting at Colliers: “Total returns in 2017 will show a very modest recovery over the 2016 collapse, but will struggle to breach two percent. Rental growth for all property will be flat and the minus three per cent negative capital growth trend seen in 2016 will be replicated in 2017.”
6. Mayoral elections will be the catalyst for growth
Andrew McFarlane, head of North West, Liverpool & Manchester City regions at Colliers: “The May 2017 mayoral elections in Greater Manchester, Liverpool City Region, Sheffield City Region, Tees Valley, West Midlands and West of England will be the catalyst for further regional growth and investment in these regions.”