IN_Business is our highly popular view of key trends in the national office and industrial markets. In this twice-yearly magazine we hear from CBRE's National Team experts on some of the hottest trends for UK real estate in 2014. Read here
In this special London supplement, CBRE’s sector experts describe the remarkable property renaissance gripping the capital. London’s prime residential, shopping, leisure and hospitality markets are all booming. Read here
A significant rebound in house prices over the last year indicates that the housing market is now fully in recovery mode. After several years of minimal growth, it is expected that UK house prices will increase by 12 per cent in 2014. The housing market will remain strong over the next five years, underpinned by an improving economy and an underlying lack of supply. Positive house price growth will continue across the UK from 2015 to 2019 at a more sustainable rate of 30 per cent with London, the South East and the South West predicted to record the highest regional increases.
- Total take-up across all the regions and the Thames Valley & M25 has reached 3.99m sq ft, almost exactly on par with the same period last year and 20% above the average take-up of 3.3m sq ft during the ‘downturn’ period of 2008-2012; - Professional service firms have dominated take-up so far, accounting for 22% of floorspace transacted; - The ever diminishing pool of prime Grade A supply has led to developments in almost all regional centres either having already started or on the cusp of commencing, with site clearance underway in some instances; - The year has seen a vast improvement in the regional capital markets. With £1.5bn in volumes invested into the office sector this is already more then we saw transacted in the whole of 2011, 2012 and 2013 and is quickly approaching the ten year annual average of £1.8bn. - Capital growth we have seen this year has been driven entirely by yield compression. Outside of London and the South East there has been very little underlying rental growth in the regions.
CBRE Residential's Midtown team have released their 'Our patch, our view' report, covering activity in Q2 of 2014. With a special feature on Soho, we've taken a look at some of the boutique developments in the area including 10 Soho Square and 15 Hollen Street. Highlights from the quarter include: - Agreed sales worth a combined £39.6 million for the quarter - New record value achieved for Midtown - 9% increase in rental values compared to the same period in 2013 The report shows positive growth in the area which we expect to continue into the next year.
ACCELERATING CAPITAL VALUE GROWTH ACROSS THE UK According to the latest CBRE Monthly Index, total returns for All Property were 2.1% in June. Capital values increased by 1.6% over the month. Central London offices outperformed again, with a total return of 2.4%, driven by strong growth in June of 2.1%. Outside of Central London, capital values also continued to increase, however at a slower rate than in the previous month. The biggest contributor to the strong retail performance was shopping centres, which recorded 2.9% capital value growth. Capital values for high street shops and retail warehouses increased by 1.1% and 1.5% over the month.