The outlook for UK real estate investments in Q1 2020 certainly looks promising as it stands, marked by a return of investors to core UK markets following December's General Election result. The recent, significant uptick in London office investment transactions is particularly positive, continuing the trend from Q4 2019 which saw near record levels reached in December alone. However, investors remain cautious amid marked geopolitical uncertainty - Brexit's impact is still far from clear, for one - and a late-cycle market which sees many sectors in a state of flux.
Against that backdrop, it appears likely that the wall of capital chasing alternatives will continue to dominate - namely, investment transactions which look for growth and stability by following social and demographic trends. The absence from the market of Asian investors is also notable, for whom long-term, core office plays have been something of a staple and the growing trend of "experiential", "hotelised" occupational real estate, focusing on service to the end-user "customer", could also hurt this core office bubble.
Buyers are looking to revive more than £2bn of potential central London office sales as an upturn in transactions at improved prices in the wake of December's General Election result encourages activity. The principal stumbling blocks are a continued wariness from some sellers about recycling capital, and a notable absence of Asian buyers kept at home by the coronavirus. CoStar News explores.A soaring number of bidders are seeking sales talks for big-ticket central London assets that had been previously withdrawn or quietly put on hold, as recent prices achieved for offices have encouraged owners and their advisers to once again answer calls.