The commercial property Market in the UK is not passing through the sweetest days. For the last few years, the performance of this domain has been not that impressive, and as on date, the market is highly uncertain. However, the market is changing rapidly, as the parties concerned are putting their best efforts to recover the disaster. So, how the market is going to perform in 2019? Let’s explore what real estate experts have to forecast in this regard.
Rental growth for the commercial properties in the UK will continue its sluggish motion
A report from the Office of National Statistics suggests that the rental growth for commercial properties in the United Kingdom will continue its sluggish motion in 2019 as well. Since the end of December 2017, the rate of rental growth for UK commercial properties have been consistently dropping, and unfortunately, it is not showing any sign of recovery in the immediate future. Experts suggest that the rate can go down to the range of 0.4 percent in 2019.
Return from Commercial properties in the United Kingdom is anticipated to drop further
In the opinion of property experts, both the capital and revenue gains from Commercial properties in the UK are anticipated to drop further in 2019. This rate has been dropping consistently since 2017, and experts don’t have better news to forecast currently. If their opinion is to be believed, the trend will continue in a similar direction for the next few years.
The forecast is that, in 2019, more and more commercial and retail spaces will be re-purposed to other entities, dominantly housing projects. This indicates that there will be a significant change in the orientations and approaches in the Supermarkets and Shopping Malls. This, in turn, is going to convert a major part of retail shops to retail warehouses. Likewise, it is expected, the extent of leases will the reduced, and it is likely that companies can even opt for shared office arrangements.
A significant drop in the value of the British Pound is going to offer more impetus to the industrial sector, as revenues from exports are rising rapidly, creating more demand for industrial spaces. This is going to pave the way for the conversion of the commercial spaces to industrial spaces. Alternatively, under-performing commercial spaces are likely to be converted to student-housing as well as self-storage slots.