Two-speed trend puts pressure on property market
The emergence of a 'two-speed' market for property assets will force investors in the Midlands to downsize their portfolios and focus on better management, according to PwC’s 'Emerging Trends in Real Estate 2011' report.
The survey, which is based on the opinions of 600 industry experts, indicates that 2011 will not be the turnaround year that many in the industry had been hoping for. Instead, a 'two-speed' market is likely to emerge, reflecting the gap between investment hotspots and second-tier property markets.
Alistair Reason, real estate expert at PwC in the Midlands, said: "The debt crisis affecting the real estate sector is continuing to put pressure on property developers and owners of commercial and residential property assets in the region. The overall reduction in activity we have seen in the marketplace over the last couple of years is expected to continue.
"However, pockets exist in the Midlands where property assets are performing more strongly. In particular, we are finding that well-managed, quality properties in good locations are achieving healthy yields despite the prevailing market conditions. An increase in the availability of equity finance means that some property in the region is being bought and sold successfully and at the right price."
