10 property predictions for 2021December 2020
With the end of the year fast approaching here are the GJS Dillon team’s property predictions for 2021:
- There will be an abundance of valuation work as banks and lending institutions assess the adjustment in capital values in the wake of Covid.
- Although it will still be a tough year, there will always be opportunities in the property market. With interest rates remaining low and prices levelling out, many investors and owner occupiers will still be looking to buy commercial property.
- On the residential valuation and surveying side, the market will slow down at the end of March with the end of the stamp duty holiday. But there will be a lot of work from the backlog of matrimonial cases that arose out of lockdown and the ‘escape to the country’ trend will continue.
- More commercial property owners will be seeking professional Asset Management advice to independently manage tenants, resolve time-consuming issues and negotiate on their behalf.
- There will still be a shortage of office and industrial stock across the County and the industrial market will remain strong. As a result of increased redundancies, there will be more SMEs setting up independently, as they did in 2008, and they will require small industrial units and flexible office space.
- The big debate about the future of our High Streets will continue, but Covid may have magnified the value of independent and convenience shops and their importance to local communities.
- There will be more activity in tax free vehicles so expect more and more SIPP and SASS Commercial property purchases in the next 12 months and beyond.
- There will be more enquiries from businesses who are fast approaching their break date or lease end and who are now seriously considering re-locating from Birmingham City Centre to Worcestershire because of its excellent motorway networks and central location.
- Assuming that the vaccination programme is a success, it seems likely that there will be a gradual migration back to the office. During lockdown, people have recognised the positive things about working in an office which they perhaps took for granted before and employers will absolutely understand the need for their staff to have a good work / life balance with flexible working becoming the norm.
- The local commercial property market will remain largely unaffected by Brexit and, after a time, we feel that the multitude of European companies which occupied commercial premises within the County before the referendum will return.