Rental growth returns to West Midlands

Nationally offices will be the winners in 2011 forecasts BNP Paribas Real Estate

Article posted: 10 Apr 2011

At their recent economic seminar in Birmingham, leading property adviser BNP Paribas Real Estate forecast that nationally offices will be the winners for the coming year whilst retail and offices in the West Midlands were predicted to see rental growth return in 2011.

 
According to BNP Paribas Real Estate’s forecasts, offices in the UK will see capital growth of 3.1% in 2011, which will be followed by a further increase of 7.0% in 2012. Offices will also see substantial year on year increases in rental growth, with a jump of 4.2% expected for 2011 and 5.8% in 2012.

Despite a modest fall in capital growth of 0.3% in 2011, the retail sector will experience a full recovery by 2012 and forecasts suggest that recovery in the industrial sector may take a little longer.

Both the office and retail sectors in the West Midlands are forecast to experience rental growth this year with a jump of 1.3% predicted for each sector. Increases in rental growth in the West Midlands’ retail and office sectors are expected to continue up to 2014 according to BNP Paribas Real Estate.

Increases in capital growth for the office and retail sectors are set to occur next year with respective rises of 3.0% and 0.5% expected.

Paul Rixon, head of BNP Paribas Real Estate’s Birmingham office added: “It is encouraging to at last see some positive news for the West Midlands demonstrated in particular by our rental growth forecasts for retail and office property. Whilst the news for industrial property overall in the region is less positive, we are certainly seeing signs of an upturn in the logistics market with occupiers increasingly focusing their acquisition activity on the core distribution locations in the Midlands.”

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Posted by Sara