West End offices and Far East money will be driving forces in the real estate sector in 2012, the industry has claimed.
Of over 200 agents and investors questioned by Strutt & Parker at its prospects for property conference 2012, 80.7% said any office investments would be in the West End.
Office investments in the City accounted for 14.7% of votes, however only 4.7% said they would purchase offices outside of the capital.
Three fifths of respondents (60.4%) believe capital income will come from the Far East, followed by the US (18.7%).
Almost half also admitted they expect to buy more than they sell this year, while 24.3% said they were looking to rebalance their portfolios.
Offices, residential and industrial were listed as the sectors that would provide the best overall returns. Just 5.4% believed that retail would provide the best returns.
Andy Martin, senior partner at Strutt & Parker, said: “I expect volumes will be under pressure this year, but the West End continues to perform well. Perhaps this is the year we can move forward slowly and gradually.”
joanna.bourke@estatesgazette.com
