Colliers predicts uncertainty and opportunity for 2017

“After a momentous 2016, punctuated by June’s EU Referendum and November’s US election, global real estate advisors Colliers International predicts a somewhat uncertain 2017 for the UK property market, peppered with reservations about European political stability and Trumponomics. However, with uncertainty comes opportunity,” says Tony Horrell, CEO UK & Ireland at Colliers International.

Predictions:

Investment volumes to recover

UK property volumes will recover slightly in 2017 as investors see through Brexit uncertainty and will exceed £50 billion.

Investor base

“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,” said Richard Divall, Head of EMEA Capital Markets at Colliers International.

Safe haven 

“US 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,” said Mark Charlton, Head of Research and Forecasting at Colliers International.

Industrial sector

“The industrial sector is set to be the strongest performing sector for the next four years with annualised returns in excess of seven per cent. This is supported by an acute shortage of quality stock in many parts of the country and the insatiable demand from “want it now” consumers driving e-commerce logistics demand,” said Len Rosso, Head of Industrial and Logistics at Colliers International.