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United Kingdom Real Estate Report 2016

United Kingdom Real Estate Report 2016

BMI View: With economic growth broadening out to the UK regions, we expect rental rates to grow acrossall three commercial real estate market sub-sectors we cover in 2016. Investors' desire to capture growthand secure higher returns should keep demand for property in which to invest high. There are stillopportunities to take on development risk in the regions and suburban London.

UK economic growth slowed slightly in Q315, expanding by 0.5%, down from 0.7% in Q215. Acontraction in manufacturing and construction output was the main factor in this slower growth. Meanwhile,the services sector has continued to be the key driver of economic expansion. Business confidence hasincreased following the decisive outcome in the May 2015 general election, ending months of uncertainty.
0Consumer confidence is also improving, and with unemployment continuing to trend down and inflation atzero, consumer spending has been rising. Overall, therefore, the economy looks set to post a solidperformance in 2015 as a whole, with BMI forecasting growth of 2.4%. Through to 2019 we expect annualgrowth to average 2.4%. That said, there are downside risks to this forecast. With the Chinese economyslowing and a flurry of weak international data, the world economy seems to be losing momentum and thiscould hold back export growth and cut business investment in the UK.


BMI Industry View
SWOT
Political
Economic
Operational Risk
Industry Forecast
Office Forecast
Table: Office Rental Rates, 2010-2015 (per sq m per month)
Table: Office Yields, 2010-2019 (%)
Retail Forecast
Table: Retail Rental Rates, 2010-2015 (per square metre per month)
Table: Retail Yields, 2010-2019 (%)
Industrial Forecast
Table: Industrial Rental Rates, 2010-2015 (per square metre per month)
Table: Industrial Yields, 2010-2019 (%)
Residential/Non-Residential Construction - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2013-2018)
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2019-2024)
Table: Residential, Non-Residential and Social Infrastructure Projects
Macroeconomic Forecasts
Economic Analysis
Table: UK - Baseline Scenario
Table: UK - Risk Scenario: Interest Rate Shock
Table: UK - Stress Scenario: Global Growth Shock
Industry Risk/Reward Index
Table: Developed States Real Estate Risk/Reward Index
Rewards
Risks
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (United Kingdom 1990-2025)
Table: Key Population Ratios (United Kingdom 1990-2025)
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
Table: Population By Age Group (United Kingdom 1990-2025)
Table: Population By Age Group % (United Kingdom 1990-2025)
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

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