As we gear up for what promises to be an exciting year in the UK commercial property market, let's have a look at what's on the horizon and how it might impact investors.
Picture this: a potential decrease in the UK base rate and a wave of anticipated investment volumes. Sounds promising, right? Well, that's precisely what 2024 has in store. With projections hinting at a significant drop in the base rate over the next couple of years, investors are eyeing this period as an ideal window to dive into the market and make the most of potential returns.
But that's not all. The occupational markets are painting a rosy picture too. Prime rents in major office markets and average rents in logistics markets saw a welcome uptick in 2023. And with development starts expected to remain low in 2023 and 2024, vacancy rates across sectors, including retail, are set to decrease, driving rental growth.
Now, let's talk politics and monetary policy – not the most thrilling topics, but hear me out. Forecasts indicate that 2024/25 could be a more favorable period for property markets compared to recent years. That means improved returns and exciting opportunities on the horizon. Whether it's development projects or sustainable assets, there's potential for outperforming the averages and reaping the rewards.
This is all sounding a bit to good to be true, so lets not gloss over the surge in borrowing costs in 2021/22 looming, particularly in the retail property market. Along with the potential uptick in tenant failures as businesses grapple with debt obligations. However, where there are challenges for some, this also brings with it opportunities for growth and innovation.
So, what's the takeaway from all this? Lets Look Ahead at the UK Commercial Property Market in 2024; as we navigate the twists and turns, it's essential to stay informed, adaptable, and strategic in our approach. By staying attuned to market dynamics, adopting a willingness to collaborate and leveraging emerging trends in Tech, you can position yourself in a position of success in the ever-evolving landscape of the UK commercial property market.
Yes, 2024 may bring change, but with change comes opportunity. Let's embrace the journey ahead and chart a course towards a brighter, more prosperous future in commercial property investment. Don't forget to subscribe to my newsletter for more property insights and other exciting updates.
Here's to a fantastic year ahead!
