There is a mixed outlook for the UK real estate sector heading into the New Year, with the overall pace of economic recovery set to slow in 2011.
According to various property consultants, a slowdown in the number of developments in the commercial market is expected to hamper recovery and in the residential sector prices and transactions are also set to slow. Jones Lang LaSalle's UK Property Market Report suggests that the revival, previously forecast to occur by 2013, will now take place at a later date.
"The behavioural nature of developers, particularly in London, has been curtailed by the lack of speculative development finance and few schemes have got off the ground despite London's supply gap," it explained.
Meanwhile, the outlook for 2011 is mixed and despite the supply of property in the UK remaining strong, there is a feeling among analysts that occupier activity will remain uncertain with no driving growth. As such, Jones Lang LaSalle claims that the "four year rental outcome 2011 to 2014 is, therefore, likely to remain the same but the path on which the market travels is subject to change."
- Tuesday 30 November 2010