JLL

JLL predicts UK property investment volumes to reach £55bn in 2020



JLL has predicted that investment volumes in the UK property market will total around £55bn this year.

This would represent a 17% increase on the estimated £47bn that the real estate and investment management specialist expects to see for 2019.

In addition, JLL anticipates that urban logistics will experience the strongest performance of any sector as a result of changes in retail and the continued growth of e-commerce.

According to JLL, the build-to-rent sector is set to grow rapidly in 2020, with a particular focus on co-living and purpose-built facilities for the elderly.

Limited supply in the office market could lead to rental growth in some London submarkets and other more constrained regional cities.

However, JLL forecasts that caution could increase throughout the year due to a possible ‘cliff edge’ in December 2020 with regard to Brexit.

Jon Neale, head of UK research at JLL, said: “The UK market is likely to recover somewhat during the first half of 2020, as investors become more confident following the [Conservatives’ general election] victory and the likely passing of Boris Johnson’s Brexit deal.

“Against the backdrop of a slowing world economy, the UK’s relatively high yield and yield spread could be a very attractive proposition to investors — although, as in 2019, the problem could be lack of product.”

Chris Ireland, CEO at JLL UK, added: “Businesses will continue to become more focused on the climate emergency and tackling [it], while a new emphasis on social value and purpose will come to the forefront in 2020.

 


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