DTZ has revealed that Manchester has overtaken Leeds as the most underpriced market in the UK.
This has made it the most attractive commercial property sector for investors in the UK. DTZ research indicates that the top three UK prime commercial property markets are:
- Manchester Retail at -13.6%
- Leeds Industrial at -11.8%
- Leeds Retail at -11.1%
Currently, UK regions hold more attraction than London, but the flow of investor cash outside London is impacting the available returns to investors. Top of the individual markets list are the retail properties in Manchester. However, Leeds has retained two of the top three positions. In fourth place is Nottingham with the most underpriced office market in the UK at 9%.
DTZ has downgraded three markets since Q1 – Manchester offices, Newcastle retail and Leeds offices as a reflection that these are no longer underpriced by a minimum of 5% below market value. The other side of the coin shows three attractive investor markets compared to Q1. London City offices, Glasgow industrial and Cardiff industrial fill these spots. The findings are based on the DTZ UK Fair Value IndexTM.
The index remained unchanged at 64 for Q2/2014. This shows that the UK continues to offer good investment opportunities. The prediction is that the UK Fair Value Index will drop below 50 by the close of 2014.
28 JULY 2014, United Kingdom