The proportion of property industry leaders intending to increase development activity in 2019 has fallen by over a third (34%) according to a survey of the UK’s largest investors, owners, developers and advisors who are members of the British Property Federation (‘BPF’), published today.
In 2017, 62% of the survey’s respondents said that they planned to increase development activity in 2018. For 2019, this has fallen to 41%.
Data from the latest polling conducted by the BPF and Grosvenor Britain & Ireland, shows that while 91% believe leaving the European Union will be worse for Britain’s economy over the next 12 months, the longer-term outlook is more positive. Almost 60% believe it will be better (41%) or make no difference (16%) to Britain’s economy over the next 10 to 20 years.
Confidence in UK real estate’s performance over the next 12 months has also fallen, with only a quarter (24%) saying they feel confident about 2019. This compares to last year’s results where nearly half (48%) felt confident about the industry’s performance in 2018.
The longer-term outlook is again more positive, and is also improving. Last year, nearly half (48%) felt confident in the industry’s performance over the next five years, but this has now increased to over half (55%).
Over a third (36%) believe the industrial sector will perform best in terms of financial return in the next 12 months, with 17% saying the same about residential. None of the property leaders surveyed felt the retail sector would perform best in the coming year.