Member Article

Newcastle’s industrial market is a ‘hot’ investment says DTZ

DTZ has classified Newcastle’s industrial market as a ‘hot’ investment in their latest report.

The report uses a “cool”, “warm” and “hot” scale to assess the investment opportunities in various areas of business within certain cities.

Since Q1, DTZ has downgraded Newcastle’s retail market to “warm” as it is no longer underpriced by at least 5% below fair market value.

Manchester retail tops the list of individual markets, with property underpriced by 13.6%, deposing Leeds industrial which was number one in Q1.

However, Leeds retains two of the top three markets with its industrial and retail property underpriced by 11.8% and 11.1% respectively.

Richard Turner, Senior Director and Head of DTZ Newcastle’s investment team comments: “Regional cities are forecast to deliver the highest returns across all sectors, with all Newcastle’s markets classified as either warm or hot, representing underpricing.

“The North east currently benefits from higher income yields which boost total expected returns. This factor combined with a strengthening of occupational markets means that investments are expected to outperform.

“Industrial is the standout sector in the North East, benefitting from a higher income yield compared to retail and offices a situation mirrored around the country where all 10 of the UK’s industrial markets are currently rated around or below fair value. We expect to continue to see strong demand for all grades of investment in all sectors in Newcastle driven by the weight of capital seeking opportunities for outperformance.”

This was posted in Bdaily's Members' News section by Ellen Forster .