UK property continues to become better value – DTZ
The UK property market has continued to become better value, says DTZ, as its Fair Value Index score rose to 78 in the second quarter from 61 in Q1.
“Prime property is providing investors with an attractive proposition in the current economic climate,” says DTZ, with all 20 markets in the firm’s UK index coverage rated either Hot or Warm, and the number of Hot markets reaching 11.
DTZ says its analysis shows there are similarities between the conditions seen in mid-2009 and now, with weak sentiment affecting the investment market and sending yields higher. The UK is also outperforming DTZ’s broader European index, which has a score of 53.
DTZ upgraded five markets for office space during the second quarter, including offices in Newcastle and Edinburgh office property, Manchester offices, Nottingham office space and offices in the City of London. DTZ expects strong rental growth in City offices to drive an increase in capital values in 2013-2014, and has returned this market to the Hot category.
