Tim Cameron-Jones, Partner and Head of Cushman & Wakefield’s Investment team in Leeds, has provided his predictions for what’s ahead this year for the property market.
“‘Shortages’ will be a feature of many market places in 2018; a shortage of completed buildings in our occupational markets, a shortage of the ‘right type’ of investment stock and crucially to the effectiveness of the professional services industry, a shortage of the right people with the right skills,” he said.
“There is unlikely to be any significant new supply of buildings in Leeds in 2018 as developers remain hesitant in the face of speculative development opportunities; those that commit to start and deliver the right product are likely to benefit from rising rents, especially in industrial, logistics and city centre offices.
“There will remain a weight of capital chasing a limited number of good quality investment opportunities, however there will be some caution in the early part of the year as buyers fear a fall in prices on secondary stock.
“The Bank of England Financial Stability Report indicates a concern that investors in general are not fully pricing risk into asset and stock acquisitions and real estates is included in this. Careful consideration of the upside and downside risks for all property acquisitions will be increasingly important in 2018.”