The UK real estate market in the spotlight
What will 2015 bring about?
Now that the dust has settled on 2014, it is becoming clear just how strong a year it was for real estate returns generally and the UK in particular.
Headlines point to phenomenal performance with total UK returns reaching their highest level for many years, but behind this we have seen some fascinating developments. Waves of new investors, an occupier market changing at a rapid pace – driven by technological disruption and economic shocks, both positive and negative - the twists and turns of new regulation and evidence of increasing M&A activity in the sector are all part of what made 2014 a particularly exciting year.
Given this backdrop, it is perhaps unsurprising that the consensus envisages a moderation in performance in 2015, but our view is that this cycle has further to run. We are confident the UK economy will show reasonable growth, even if the pace will be more measured than last year. This will provide a solid foundation for another year of robust performance, with further yield compression and improving rental growth.
REflexions issue 1 - April 2015
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.