During 2016, the UK’s office market experienced a few ups and downs linked to political uncertainty and decreased consumer and investor confidence. In spite of this, the overall market performance did not stray far from what was expected: strong levels of leasing activity in the Big 6 office markets (namely Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester), sustained rental growth due to the limited availability of Grade A space in cities like Birmingham, Bristol, Leeds, Manchester, London, Cardiff, Edinburgh, and Glasgow, and a notable surge in the number of lettings closed in London towards the end of the year. Are these trends expected to continue during 2017?
2017 UK Office Market Forecast
Some of the trends affecting the British real estate market in general are expected to have an impact in the performance of the country’s office market too. The most notable of these include:
– Generalised market volatility linked to the political and economic ramifications of the Brexit process
– A low GDP growth index (currently set at 1.4 per cent) may result in a tight job market and increased inflation, which in turn may cause business owners and investors to postpone the acquisition of new office properties or to downsize