Over the next 18 months UK institutions are expected to be the biggest sellers of property in the UK, according to research from Fineman Ross.
More than 41% of respondents to the firm’s investor sentiment survey believed this, while over 26% thought banks and lenders would be the source of the most sales.
Investors’ appetite for risk has also not been diminished by the outbreak of Covid-19, as 67% of respondents said their willingness to take on risk had either increased or stayed the same as it was before the pandemic.
“Many investors see the crisis as an opportunity to increase their exposure to risk and maximise returns in a less competitive market,” Fineman Ross reported.
The long-term impact of the pandemic on the office market remains to be seen but shifts in office use are already emerging with 80% of respondents stating that they would work at least one day per week at home more than they did previously. A further 30% said they would work two or three days more at home.
This move towards more homeworking by investors also saw more than half agree that occupiers’ office space requirements will reduce in the long term.
A third of the respondents believe co-working will benefit as tenants seek greater flexibility in the long term, while 31% believe it will not.
James Rood, partner at Fineman Ross said: “Whilst the impacts of the pandemic have already been felt in the central London investment market, with most market activity being put on hold in the immediate term, the longer term ramifications remain yet unknown, a sentiment reflected within the survey.
“Whilst the nature of this crisis is unparalleled, as with any downturn, opportunities exist for those with a higher propensity for risk.
“We expect some longer-term shifts in the way people use and interact with real estate, but the fundamentals of London, relative to both other asset classes and other gateway European cities, mean it will remain a priority for both international and domestic investors going forward.”
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