Investing in Property post Covid

Wed 29 Sep 2021 15:50:20

Investing in Property Post COVID: Why you Should Act Now:

The UK's economy is primed for an imminent recovery in 2022, offering unique opportunities for property investors whose needs have been reshaped by the pandemic. As the economy reopens and vaccination programs are rolled out, intelligent investors should look into developments that offer the greatest potential to grow in value. 

Economic recovery prospects

While the UK's economy may be sensitive to political, natural, and global financial risks, it is nonetheless very resilient. The country’s population of young, highly literate, and dynamic consumers, creates a demographic window that translates into a strong, robust market over the medium and long term. This, coupled with the government’s infrastructure projects, will serve as a growth engine and pave the way for a sustained recovery. 

Sustained land value appreciation

In fact, despite the economic slowdown, land values have continued to climb. This should serve as an indication of how land values could further appreciate once the economy picks up. Emerging business hubs could stand to appreciate the most, and offer enormous opportunities for those looking at a 5-10 year horizon. 

One compelling reason to invest at this time is that property prices, especially in the new growth centers, have not yet skyrocketed, thereby offering good upside potential. Second is the availability of credit from financial institutions, many of whom have become less stringent with their terms. For investors, this is a buying opportunity that seldom comes up.

Solid demand for office, residential spaces

Even as the Covid-19 pandemic persists, growth in the office space sector is inevitable. Despite expectations to the contrary, demand has stayed strong in 2021. New data from Quotezone.co.uk shows that demand for office space has made a partial U-turn in the first five months of this year, following a sharp decline during the height of the pandemic. The residential market also bucked expectations in 2021, with demand exceeding supply as intelligent investors saw a golden buying window during the pandemic.

Post-pandemic investor preferences

For instance, intelligent investors are showing a strong preference for micro cities, with the proximity of one’s residence to the office becoming highly valued following the pandemic. There is an increased demand for properties in central business districts and mixed-used developments. All these will translate to an appreciation in property values, which will be highest for properties with the optimum potential for growth. 

The function has also emerged as an important consideration. Having units with the right cuts, open spaces, good ventilation, natural lighting, and right density is therefore very important. Most importantly, a good location matters. Proximity to the international airport, transportation links, hospitals, schools, and commercial areas differentiates high-value properties from the rest. Properties located along growth areas stand to benefit considerably from the government’s massive infrastructure program, which aims to link emerging growth centers and spur the development of new ones.

Sales on the up

If you have been following our recent auctions, then you would have seen that we have sold 100% stock on three separate occasions in 2021. This may be the rise of the investor, if so, we want to help you build your investment. If you are looking to invest then make sure you see our latest lots by clicking here and contact our office for any queries.