Where next for property?
With Brexit continuing to dominate domestic politics, the fallout and impact for businesses will certainly be evident through the first quarter of 2019. In this climate, the uncertainty will complicate some portfolio decision making.
You only have to look at the property pipeline in Central London to appreciate the future mix of residential and mixed use. Meanwhile, a shortage of Grade-A office space will put the focus on refurbishment, rather than new build in the commercial sector. This, coupled with the growing appetite for online shopping combined with expectations for faster delivery times, is ensuring urban warehouses are more in-demand than ever.
Here are Norman Broadbent Group’s key property predictions for 2019:
The Office and Commercial market will continue to heat up
With flexibility and portfolio readiness leading the charge, the shortage of Premium grade property in key UK office locations is looking to intensify. From our conversations and recent surveys by Deloitte and PwC, the London pipeline looks rather thin beyond 2019, with an uncertain future. Developers are categorizing speculative developments as a much riskier prospect, and more likely to refrain from making any significant decisions, in the short term at least.
Asset realisation through disposals or refurbishments rather than new build is also another key trend. With the continued push towards more flexible office space and the further reshaping of retail and commercial portfolios, the issue has risen up the agenda for landlords and tenants, to meet their changing expectations of the workforce.
Technology within Property
We believe businesses will also look to invest more in integrated and smart technology solutions for workplaces, making them mainstream in 2019.
Whilst technology has firmly established itself in the Real Estate and Property sectors, 2019 will be the year when it will need to come of age, with companies needing to demonstrate how their smart offices and other innovations offer a “real return on investment.” This, in turn, will allow companies to realise and appreciate the power of data and analytics.
Whilst an atmosphere of uncertainty still lingers around Brexit and the challenging market conditions in the UK, the next 12 months in Real Estate and Property will certainly be viewed by some as one of the most critical of periods. However, with 20+ years of providing people solutions into the ever changing world of Real Estate & Property, we’re sure there is both challenge and opportunity ahead!
If you would like to find out more about our predictions, how we can help you, or discuss a specific assignment, please do not hesitate to contact Tony Robinson, Director, Real Estate and Property practice on +44 (0) 207 355 6930 or via firstname.lastname@example.org for an initial confidential discussion.