Businesses can look forward to a period of increasing confidence entering 2018, according to the latest report by specialist business property adviser, Christie & Co.
In its Business Outlook 2018 report, Christie & Co identifies the sectors that benefitted from activity fuelled, in part, by the availability of finance and a surge of investors, many from outside the UK, looking for good opportunities and strong returns.
The continued uncertainty surrounding Brexit has made its impact across all sectors, but the UK has also welcomed a spike in tourism and a surge of foreign capital into the UK market. Asian investors particularly view the UK as an attractive investment opportunity thanks to the country’s stability and the relatively low value of the pound.
Looking forward, Christie & Co remains increasingly confident in its sectors. The Business Outlook 2018 report expects further consolidation as pressures on costs continue, but this will prompt a shift towards embracing change, as technology and innovation evolve alongside the UK’s strengthening economy.
Average prices remained economically positive throughout 2017 across almost every sector in which Christie & Co specialises. These are as follows:
Dental: + 12.3%
Pharmacy: + 8.1%
Care: + 6.1%
Childcare: + 10.8%
Retail: - 0.4%
Pubs: + 3.8%
Restaurants: - 3.4%
Hotels: + 5.8%
Richard Lunn, managing director – care at Christie & Co comments, “Having achieved levels of activity across the sector on par with those achieved pre-recession, our healthcare business concluded the year remaining at the forefront of the marketplace with the highest number of transactions in several years.
“A surge of new development activity within the sector has driven improvement of the quality of estates and brought about a diversity of operators and investors seeking new opportunities, such as care villages and extra care schemes to supplement care.
“We can expect further investment from global investors seeking yield security in a low interest environment. While this is likely to be followed by a separation between property and operating companies, the shift could also lead to unprecedented levels of PropCo transactions.”
Chris Day, global managing director at Christie & Co, comments, “We are seeing the signs of increasing confidence and economic positivity in almost every sector in which we operate and pipelines continue to grow by double digits as we enter 2018.
“Whilst higher inflation and sluggish wage growth are squeezing consumer spending and acting as a drag on the speed of UK growth, and a lack of clarity around Brexit is hampering some investment but there are positives. Unemployment is at its lowest rate since 1975, inflation remains low, interest rates are stable and manufacturing growth is strengthening. In short, the economy is recovering and there is still plenty of room for growth.”
