London calling 11th December 2013

London will remain the key European gateway city for global investors in real estate while the UK economic recovery will spread rapidly to South East offices and retail warehouses in particular and spark better times for the retail and industrial sectors, reports CBRE in predictions for 2014.

 

In a wide-ranging review of UK and European property in 2013 and how it will perform next year, CBRE has outlined five key highlights for the property market in 2014. They are:



• Despite the emergence of recovering European cities, London is expected to continue to serve as the gateway city for global investors in real estate



• An inevitable rise in interest rates is not expected to curb the appetite for real estate and property yields should be under downward pressure from improving rental growth prospects and increased investor demand.



• Overseas capital will continue to play a major role, with Asia expected to challenge the US as the biggest source of capital flow into the UK next year



• The office market recovery is expected to spread rapidly to the South East market • 2014 should see improved performance in the retail and industrial sectors. Retail warehouses are set to recover in line with upturn in the UK housing market.