Insights

UK real estate predictions

2014

2013 was a better year for the UK economy than many expected or even hoped. The recovery in commercial property played out just as we predicted with capital values turning positive from the half year point. Indeed, we had a pretty good run with our predictions over the course of last year.

Real Estate Predictions is our annual report examining recent trends in the UK real estate and land use industry, indicating what we can expect for the UK economy in the upcoming year.


It’s predictions time again and given the near 100% accuracy of our 2013 forecast, we are delighted to share our view of what 2014 holds in store for us all:

  • The UK enters 2014 in far better shape than at the start of 2013, and is now on track to see the strongest year of growth since 2007;
  • UK commercial property: expect strong capital value growth in the first half of 2014;
  • Taiwanese insurance companies to join the wave of overseas investors targeting the UK;
  • Construction costs to jump in early 2014 as pricing power shifts to contractors;
  • Vacancy (finally) starts to fall on the high street in 2014;
  • E-fulfilment battle will drive a sharp increase in retailers’ demand for urban logistics in 2014;
  • New policies will help public sector property disposals get underway;
  • Real estate will step up as a key tool in the battle for talent; and
  • The TMT sector will continue to drive London office demand in 2014.

London will remain a key focus, but investors will become increasingly comfortable about a move up the risk curve as the improving economy will make opportunities outside London more and more enticing.

Snapshot of our predictions

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