Think/UK - July 2011 - UK Property Investment Market Outlook
Report Authors: Henderson Research - Henderson Global Investors
Report Summary:
Unsettled UK outlook, but high pressure from overseas benefits London
The yield-driven recovery in UK capital values is drawing to a close, leaving the spotlight focused on performance fundamentals. There can be no grounds for complacency with rental values still falling across many areas of the country. Central London, however, has a different dynamic because of its global-facing position. According to CBRE, the Capital ranked in joint first place as the most popular retail destination in the world in 2010, and global firms accounted for half of occupier take-up in the Square Mile. Central London prime office and retail rents are soaring as investors continue to buy into the story.
London’s global exposure is providing investors with opportunities for diversification from domestic woes. The sterling exchange rate against a basket of world currencies is still 14% lower than pre-crisis levels and this is leading to higher tourist spending, while the Olympic Games is expected to provide a boost to London’s retail and leisure sectors in 2012. In terms of general economic activity, Oxford Economics predict London GDP will increase by 3.8% per annum, over the next five years compared with 2.5% per annum for the rest of the country.
About the Author:
Henderson Global Investors is an international investment company, with a strong reputation and a proud history, going back to 1934. We currently manage £74.4 billion and employ more than 1000 members of staff worldwide, of which more than 250 are investment professionals.
Our research department provide investors with the information, resources and the infrastructure they require.
As a pure asset management house, Henderson Global Investors know what investors want from us: to help them achieve their investment objectives by delivering performance that meets their expectations.
