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According to Knight Frank, a global property advisor the sector of specialist property investment will achieve a record year with their corresponding transaction volumes likely reaching to about 12 billion pounds this year. This analysis by Knight Frank showed that the specialist property in the UK is going from strength to strength as its investment values continue to trend upward.
Currently the strong investor demand in the sector as well as the pipeline deals is expected to be completed in H2. The full year figure will likely exceed the original forecast of the global property advisor which was set only at 10 billion pounds. They are expecting it to reach as high as 12 billion pounds which is a record breaking figure. During the first half of this year, the specialist property investment volumes have notably reached nearly 6 billion pounds.
Strong investor demand
The various sectors specializing in their own industries- healthcare, hotels and automotive and student property are reportedly experiencing a surging demand in investments as the asset class becomes part of the universe of the mainstream properties. The transaction volumes coming from the student property reached about 3.5 billion pounds in H1 and are expected to exceed 5 billion pounds at the end of the year. There is a reported shortage in assets with good quality which prompted prime yields to stay at 4.5 percent with increasing pressure on the secondary stock pricing quality.
In the sector of the hotels, the investment market continuously to remain buoyant with virtually all corner of the market attracting equity and attention. In the last six months this year, the market will see a continuation of the supply demand imbalance which would in turn lead to further yield compression. The sector of healthcare meanwhile recorded about 500 million pounds of transactions in H1. The demand for quality assets continue to outstrip the supply available in the market which is true for both going concerns and fixed income.
This spur in the growth of the specialist property sector will also influence positivity in other businesses directly related to the housing industry like painters & decorators Northampton.