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Depressed Property Market Still Outperforms Equities

LONDON-UK property is set to outperform equities again in 2001, despite depressed returns reflecting the economic downturn according to new research from Insignia Richard Ellis.

By Graham Parker | Updated on December 14, 2001

LONDON-Property in the UK is set to outperform equities for the second consecutive year, according to Insignia Richard Ellis. And the firm forecasts that, after hitting their lowest level since 1995 this year, property returns will improve over the next three years as the economy recovers momentum and occupational markets strengthen.

In the key central London office market overall take up for the year is expected to be in the region of 14 million sf. Although this level is lower than the 18.6 million sf seen in 2000, it is higher than the five-year average.

In the West End market many requirements have been put on hold and availability has risen by 25%. Prime rents in this area also saw their first drop since 1992, down to £77.50 ($112) per sf from £82.50 ($119) per sf at the start of the year.

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