Kingsturge - UK Commercial Property Forecast
Retail:- Forecasts for the retail sector have generally been revised upwards for 2003, following its strong performance last year and in the first few months of 2003. Latest projections indicate a total return of 12.7% for 2003.
- Projections for rental value growth in standard shops have been revised downwards slightly to 1.6% in 2003. The total return is expected to be around 10.8% this year.
- Forecasts for shopping centres have been upgraded in recent months and now indicate rental value growth of 3.2% in 2003, and total returns of 12.9%.
- The retail warehouse sub-sector is forecast to see strong rental growth of 5.4% in 2004. The sub-sector is projected to produce a high total return of 17.1% in 2003.
- Latest forecasts have been revised downwards to show a decline of 6.6% in rental values across the UK. This is largely due to falling rents across London and much of the South East.
- Capital values are now projected to fall by 5.2% across the office market as a whole.
- Total return for the office market is expected to be just 1.7% in 2003, picking up to 4.5% in 2004.
- Rental value growth forecast for the industrial market have been revised downwards in recent months to 0.3% and 0.2% over this year and next.
- Capital growth projections indicate moderate growth of 2.6% in 2003.
- Projections for the industrial market indicate a moderate total return of 10.6% in 2003.
For information please visit www.kingsturge.co.uk