Private investors optimistic about UK property

According to data from Investec Real Estate, private investors and developers remain confident on the prospects for UK real estate despite persistent economic uncertainty.

The Investec private client mood poll surveyed 110 people with a combined net worth of £12.2 billion on their views on the UK real estate business.

70 percent of respondents stated that five year UK residential capital values would be either higher or significantly higher than the 13.1 percent rise predicted by real estate firm Savills.

London's residential market was viewed as an especially attractive market for real estate investment, with 91 percent of private clients anticipating a positive return on their investment.

However, just 42% of investors viewed retail as extremely attractive over the next five years, indicating that they are contemplating a return to the industry.

Eighty-four percent of investors and eighty percent of developers intend to be active in the office space industry during the next five years.

William Scoular, head of private client real estate lending at Investec lEstate, said: “It is exciting to hear insights from this traditionally discreet group - and encouraging to see that they retain their capacity to innovate and speculate ahead of the rest of the real estate world.”

Sustainability was also identified as a key priority by practically all respondents, with 99 percent of respondents indicating that they were subject to external pressures on the topic.

By fLEXI tEAM