Spotlight: 

Key Themes for UK Real Estate in 2016

Key Themes for UK Real Estate in 2016
The UK Real Estate Market in 2016

10 December 2015, by Lucian Cook

Focusing on the income producing potential of property asset classes will be paramount in 2016.

Back to Fundamentals

The investment fundamentals of property are expected to become paramount in 2016, with much greater focus being placed on the income producing potential of the various asset classes and the ability to unlock the latent value of individual assets through management action.

 

This not only reflects the stage in the property cycle but also the medium term prospect for interest rate rises, regulation and tax policy in the residential sector and the outlook for commodity prices in the agricultural sector. In the commercial and residential markets we expect a shift towards investment in the markets beyond London, given where recent capital growth has left yields.

The referendum on Europe probably presents the greatest uncertainty for 2016/17, the outcome having potential implications for all three sectors. 2015 teaches us that the prospects for a pre-referendum investment slow down may well be dependent on how close the pollsters believe the outcome will be not to mention their ability to accurately predict the result.

 

 
Returns Matrix

Articles from Spotlight: Key Themes for UK Real Estate in 2016

Key Themes In 2016: Commercial

In 2016 we expect investor demand to remain strong with promising prospects in the towns and regions outside London

Key Themes In 2016: Residential

Mortgage regulation seems to have cooled the market, we expect demand for private rented sector accommodation to rise

Key Themes In 2016: Agricultural

With the drop in commodity prices and the potential for UK exit from the EU, the future for farm incomes remains uncertain

What Are The Top Picks For 2016?

A snapshot of our predictions for the commercial, residential and agricultural sectors of the market

 
 

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Key contacts

Mat Oakley

Mat Oakley

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8781

 

Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837

 

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099