Majority government inspiring market confidence say Colliers
The unexpected Conservative majority in the general election has given confidence to the commercial property market, according to a recent report from Colliers.
Although the market did not suffer greatly in the run up to the general election, the looming threat of a hung parliament had the potential to derail the consistent momentum of the market seen in the preceeding months.
However, with a majority Conservative government in place, the report now forecasts returns of 15% in 2015, 2% higher than pre-election predictions.
Martin Mahmuti, Senior Property Economist at Colliers International, said: “The post election commercial real estate landscape is set to be buoyed by the emergence of a majority government.”
“The stability and certainty instilled by the unexpected Tory majority is set to ramp up the pressure exerted by the weight of the capital, with investors keen to push ahead with deals previously deemed tentative.”
2015 has generally been seen as a positive year so far for commercial property, with occupier activity at the highest levels since 1998, office space take-up rising by 64% and shopping centre footfall seeing strong numbers.
The Colliers report forecasts that office will be the strongest performers this year in the market, while industrial is set to remain strong and retail will lag behind, as was the trend last year.
Despite the positivity, the report outlines that a potential roadblock for growth in the future is the looming EU referendum.
Mr Mahmuti commented: “Despite the expexted boost to investor confidence, trading volumes and yields, the EU referendum will be the next uncertainty impacting the market.”
With the referendum still years away however, its seems that these fears will remain dormant for the time being.
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