Property investments for 2018 worth considering
Brexit negotiations are ongoing and seem to have reached a peak point of instability. The ascent of Trump is leaving once-secure trade deals uncertain.
As the world teeters on the brink of seeming collapse, is the financial world feeling the pinch?
And how does this affect the property market?
Perhaps surprisingly, the property market in the UK has remained buoyant in 2018, and many sectors have bounced back from seeming obsolescence since only a few years ago.
Despite calumny in the news, this might be one of the healthiest periods for investment over the past few years.
To show you what we mean, we’ve assembled some of the highlights of the property sector. Take a look – they might give you new investment opportunities.
According to the Royal Automobile Club (RAC), there are between three and 11.3 million parking spaces in the UK – and many are for big spenders only.
Put that alongside the estimated 30 million drivers in the UK and purchasing a parking space can give you an automatic sizeable customer base, but only if you choose a space that’s geographically desirable.
In the Grade-A category is airport parking, though this is mostly dominated by private companies selling to customers at premium rates. A standard provider of Luton Airport parking, for example, can charge upwards of £70 a day for a private spot with all the trimmings.
But this is an investment that will provide a sizeable ROI if you can fend off the competition.
The latest Colliers property report has forecasted record total returns of 8.6 per cent for offices outside of Central London in 2018.
That’s in part because offices are considered to be ‘trophy properties’ valuable to foreign buyers who’ll sell them for a profit later.
Think northern versions of the ‘Walkie Talkie’ or the ‘Cheesegrater’ in Central London – both owned by foreign investors and both accumulating value for a later date.
Investing in office space in the right area now could get you in on the ground floor of the property market – especially if you can sell your wares to an interested foreign investor.
Total trading volumes of office space have exceeded £65 billion – we recommend grabbing a piece of this pie.
The retail sector on the whole is looking shakier than a drunk with his morning coffee, with high street shops largely lying dormant and major corporations like Toys ‘R’ Us falling into administration.
This is in part because of the dominant force of online shopping – people simply don’t visit the high street often enough.
But in a curious twist of fate, this has left retail warehouses in a healthier position. Steady occupier demand for warehouses has transformed them into an investment coup.
Online shops need somewhere to store their stock, and high street retailers need a place to offload their surplus items.
Total investment rates for warehouses in 2017 was £2.8 billion – a sturdy investment for anyone looking to diversify their property portfolio.
That’s our list! Are you a property developer with specialist insight into the market? Or perhaps you’ve bowed out of the sector after a series of poor investments? Whatever your situation, let us know your experiences in the comments section below.