Member Article

Property market "thawing" says industry body

Property industry seniors believe there are signs of improvement across the UK, following discussion at the British Property Federation’s annual conference this week.

The Federation say the regions had been suffering from a “credit drought” while London enjoyed growth fuelled by overseas investors.

As schemes like Manchester Airport City and Battersea Power Station begin to gain momentum, the organisation suggests there is a growing optimism.

Chris Grigg, chief executive of British Land and President of the British Property Federation, said: “A week may not seem a long time in property, but in this market, a few months certainly does. We have seen a real thawing in market conditions of late, and not just in London. The UK economy has done better than the pessimists predicted, and there is undoubtedly more bank finance out there now. Meanwhile, domestic and international buyers have started to run the slide rule over more real estate outside as well as inside the capital.

“On the other hand, we are by no means out of the woods yet. UK economic growth remains low and unemployment painfully high. The challenge to our industry is startling: we must provide relevant space for occupiers whose needs are often changing, and do it at a time when capital markets are still patchy. Government faces a similar challenge: to provide world class infrastructure on a tight budget.”

Mark Payne, partner at Clifford Chance LLP, added: “Inbound foreign investment into the UK continues to be dominated by investors from Asia. We are also seeing new market players from the Eurozone, particularly private equity funds and high net worth individuals.

“Sovereign wealth funds from many parts of the world continue to keep us busy and are eager to add London assets to their real estate portfolios. The best properties attract a lot of competition and the reputation of the buyer and its advisers really matters.”

This was posted in Bdaily's Members' News section by Tom Keighley .

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