Welsh 2020 Commercial and Residential Property Forecasts
Leading property agent, Savills, has given its residential and commercial property predictions for the coming year.
Last week Savills outlook event took place, at which representatives from Savills commercial, rural and residential research teams discussed the investment trends which they expect to exceed market expectations in 2020.
Recently the property market as a whole has been somewhat volatile primarily due to Brexit which has dominated the headlines for the past three years. The decisive general election outcome arguably has brought some stability, but the ongoing uncertainty over the nature of the UKs continuing relationship with the European Union raises further questions.
Despite this, Savills has said that commercial property investments are anticipated to increase, as a number of non-UK investors who were put off by Brexit are now returning.
Chris Potts, head of Savills Cardiff office, has said:
“Cardiff continues to attract a wide group of fast-growing tech and financial companies and, with office investment volumes also remaining healthy, we’re anticipating a positive year for the city’s commercial markets overall. Further afield, we’re also anticipating more investment into the region’s warehouses sector this year, particularly in South Wales where a new National Planning Framework and local authorities putting in place strategies for new industrial development should result in developers delivering more large-scale schemes, which are likely to be quickly snapped up by tenants.”
With regards to the residential housing market, Wales had a stronger growth than the UK as whole last year with prices rising by 3.0% compared to just 0.2% in the rest of the UK. This strong growth is predicted to continue over the next five years.
In the shorter-term Savills believes that apprehension surrounding Brexit may halt progress however this is not expected to last for long and prices are expected to continue to increase in line with household incomes. The average house price in Wales in currently £165,000, Savills has boldly suggested that this figure will see growth of 18.1% between 2020 and 2024.
RDP’s specialist property team has seen first-hand the steady increase in both commercial and residential investment in South Wales, with a marked increase in the amount of instructions that we are receiving to act in connection with the acquisition and disposals of residential and commercial property since the election.