New Market Research Report: United Kingdom Real Estate Report Q1 2011

New Business market report from Business Monitor International: "United Kingdom Real Estate Report Q1 2011"
 
Jan. 5, 2011 - PRLog -- It appears that 2010 marked the nadir in the fortunes of the UK's real estate sector. When we interviewed them in the middle of the year, our in-country sources indicated that rents and yields had stabilised in London, Manchester and Glasgow - and across all three sub-sectors. In London, for instance, rents have risen by 5-8% in the office and retail sub-sectors and by a little more than this in the industrial sub-sector. Our sources are looking for a 5-10% rise in rental rates, across the board, in 2011.

However, it needs to be remembered that this follows an annus horribilis in 2009. Rental rates fell by about one-fifth in all three sub-sectors and most parts of the country. Prices and values dropped by a greater amount, resulting in net yields rising quite sharply.

We continue to take the view that landlords in central London may be able to benefit from the partial recovery in the fortunes of the global financial services sector. Others, outside London, may be able to benefit from the relocation of businesses from the capital to less expensive parts of the country. Overall, though, BMI considers that the prospects for the sector are generally uninspiring.

The principal problem is that, as a result of a long and deep recession, UK businesses are unwilling or unable to sustain paying the rental rates that were prevailing prior to 2008. It is difficult to see this situation changing for the better except at a glacial pace. The new Conservative-Liberal Democrat coalition government will be forced to pursue austere fiscal policies. Over-leveraged and still exposed to the further falls, that we expect, in housing prices, UK households are unlikely to increase their consumption over the next two years.

Nevertheless, there are two positive aspects that are worthy of a mention. One is that the UK commercial Real Estate sector as a whole does not appear to be exposed to a glut of new property. Vacancy rates are, in some places, running at double-digit rates, but only just. The second is that the fortunes of all UK businesses which are oriented towards export markets - be they manufacturers or service sector enterprises - have enjoyed a huge boost to their competitiveness as a result of the slump in sterling relative to most other major currencies. It is possible that it is a recovery in exports that finally changes the dynamics of the country's commercial real estate sector for the better: in this context, the recent strength of rental rates in London's industrial sub-sector is noteworthy.

In the medium term (2011-2015) we anticipate that yields for commercial Real Estate in the UK will basically track sideways. Rental rates and capital values will, for the most part, move together.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/106413_united_kingdom_real_est...


Report Table of Contents:

Executive Summary
SWOT Analysis
- UK Real Estate/Construction Industry SWOT
- UK Political SWOT
- UK Economic SWOT
Regional Real Estate Overview
- Table: Central And Eastern European Office Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
- Table: Central And Eastern European Retail Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
- Table: Central And Eastern European Industrial Markets At A Glance - Rents, 2009-2011 (EUR per m2 per month)
Real Estate Market Overview
- Table: United Kingdom Real Estate Markets - Rentals in msq/month (GBP)
- Table: United Kingdom Real Estate Markets - Net Yield (%)
- Table: United Kingdom Real Estate Markets - Terms of Contract/Lease
- Table: United Kingdom Real Estate Markets - Available Space (msq) and Vacant Space
Forecast Scenario
- Real Estate Outlook
- Table: United Kingdom Real Estate Markets - Rentals in msq/month (GBP)
- Table: United Kingdom Real Estate Markets - Forecast Net Yield (%)
- Construction Industry Outlook
- Table: UK Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
- Macroeconomic Outlook
- United Kingdom - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Europe Real Estate/Construction Business Environment Rating
- The UK's RECBER
- Western Europe Project Finance Ratings
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
Company Monitor
- A&J Mucklow Group
- British Land
- Hammerson
- Land Securities
- SEGRO
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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