Alternative assets in the real estate market are producing thin margins, but momentum in the sector is building, according to Colliers International.
There are more opportunities to buy sheds owing to the number of haulage and logistics firms entering administration, however interest is limited to profitable logistics firms operating from the properties.
Colliers also said that London hotels recovered well in 2011, with the provinces improving more slowly. It has forecast that sterling-denominated assets will continue to benefit from safe haven investment flows, especially property assets such as London hotels.
Pubs continue to face difficulties, but rationalisation and diversifying the offer into catering has improved trading positions.
Dr Walter Boettcher, director, research and forecasting at Colliers, said: “Economic momentum is building, but disposable income growth is still limited, hence discretionary spending will remain subdued.”
joanna.bourke@estatesgazette.com
