Investec: UK property professionals earmark residential sector
According to a new study by Investec SPB, UK property professionals expect the residential sector to offer the biggest investment opportunities in the next 12 months.
- (1888PressRelease) March 05, 2011 - UK property professionals expect the residential sector to offer the biggest investment opportunities in the next 12 months, according to a new study(1) by Investec Specialist Private Bank's Structured Property Finance division.
The retail and leisure sectors are ranked joint second in the study, followed by the office and then industrial sectors.
Ranking according to attractiveness for investment in next 12 months Sector
1st = Residential
2nd = Retail
2nd = Leisure
4th = Office
5th = Industrial
Source: Investec, December 2010
The study also reveals that around half (49%) of those surveyed expect UK residential property valuations to fall over the next 12 months while a third (34%) believe they will stabilise. Only 13% believe they will increase. Of those who believe they will go down, nearly three quarters (72%) anticipate a fall of up to 5%. Nearly a quarter (24%), however, believe they will fall by between 6% and 10%.
Expectations for yields are more varied with a third (33%) of property professionals expecting them to increase, a quarter (25%) forecasting that they will remain the same and 14% expecting them to decrease over the next 12 months. A further 8% expect to see an initial decrease followed by an increase, while 4% anticipate the reverse of this.
Gary Dobson of Investec's Structured Property Finance division comments: "Residential property values in the UK remain depressed compared to their peak and it seems likely that in many areas of the country they will continue to fall during 2011. This should create some great opportunities for investors as they take advantage of low valuations and higher yields.
"We believe this year will offer strong lending opportunities to both new and existing clients and we're expecting to meet a much higher level of demand to support development projects than in recent years."
Further information:
Patrick Evans/ Georgiana Brunner
Citigate Dewe Rogerson
Tel: 020 7282 2913/2806
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