Property remains a safe haven for capital preservation, and demand for prime, secure investments will be as keen as ever. Yields on many commercial property sectors, for example, are higher than those in much of Europe.
Welcome to the 2018 Savills Cross Sector Outlook, in which our team of research experts forecast the top performers and key trends across each sector
The uncertainty over the UK’s future relationship with the EU will continue to cast a shadow over economic growth throughout 2018, leading to a more cautious outlook amongst investors across all sectors. However, although sentiment and activity may be subdued, it doesn’t mean investment will stop.
"A shortage of prime stock is leading investors to seek income in alternative assets"
Mark Ridley, Chief Executive Officer, UK & Europe
Although the pace of recovery will be dictated, to a large extent, by Brexit, investors are exploring new opportunities. So, while the mortgaged buy-to-let sector is in decline, there is fresh impetus in the multifamily market. In the commercial sector, a shortage of prime stock is leading investors to seek secure income in alternative assets. Even in the rural and farming sector, which is highly sensitive to the outcome of Brexit negotiations, assets such as renewable energy and agritech offer potential for future gains.
Given the economic climate, making the right investment is crucial. This report outlines the findings of our expert research teams across the commercial, residential and rural sectors. We believe it will help inform your future investment decisions.
Summary
Commercial
As risk aversion remains a major trend, income-producing asset classes such as warehouses and student accommodation will grow in popularity.
Residential
The decline in mortgaged buy to let investors will create opportunity in the build to rent market, while investment focus will shift to the regions.
Rural
With uncertainty dictating rural market sentiment into 2018, scale, efficiency and diversity of income will play a key role.
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