Member Article

Manchester retail property amongst UK’s most attractive investment sectors

In a recent report, Manchester has been found to be the 2nd best place in the UK to invest in retail properties.

The report shows that the most underpriced markets continue to be found in regions outside of London, with many investors targeting the North West.

The UK Fair Value Index identifies the most attractive office, retail and industrial markets for prime commercial property investment now on a five year hold period.

The list pinpoints those cities with the most attractive pricing for investors looking to enter the market now.

Senior Investment Director, DTZ Manchester Bruce Poizer, said: “Economic recovery and robust retailer and consumer demand mean that Manchester has the strongest rental growth expectations from all our UK market segments for the next five years, averaging 4.2% p.a.

“Manchester retail is currently under-priced by 13.1% according to our Fair Value analysis.

“Further price improvements and increased rental growth expectations over the next five years lead us to forecast prime total returns of around 7.8% p.a.

“Investor sentiment remained strong with prime yields holding at 4.75% in Q1 2015.

“These are expected to fall to 4.5% by the end of 2015, which will boost capital growth to 3.1% p.a.”

“Going forward, relatively strong rental growth and modest yield compression lead us to believe that it will continue to offer good value to investors over the next few years.”

This was posted in Bdaily's Members' News section by Sophia Taha .