With political and market uncertainty prompting greater caution among investors, Savills assesses which assets and sectors are likely to prove popular, and which to avoid, in 2017
Assets with secure income streams which are insulated from supply and demand fundamentals will be most highly prized in 2017, according to Savills.
The advisory firm says the unexpected political events of 2016 will lead to a rise in caution among investors but this could benefit the UK, where high levels of transparency and stable legal structures make real estate a “safety play”.
Greater risk will mean a strong focus on retirement housing, logistics and energy.
Opportunistic investors will also look towards mixed-use development opportunities linked to infrastructure improvements, rather than distressed assets.
A less crowded marketplace is predicted for the value-add investor, particularly if lender caution means tighter borrowing criteria for developments.
