New research from Handelsbanken has revealed that 82% of investors expect demand for commercial property to increase over the next 12 months, marginally ahead of residential property (77%) – possibly driven by consistent numbers of workers returning to offices.
On a sectoral level, the three most in-demand sectors among property investors over the next 12 months are residential flats (63%), commercial offices (62%) – be that for repurposing or capitalise on top quality assets in prime locations – and residential houses (61.5%).
Support for these sectors has risen dramatically over the last year, with flats up 10% (53%), commercial offices up 4% (58%) and residential housing up 15.5% (46%) compared with 2023.
At the other end of the spectrum, the three lowest-scoring sectors this year are commercial retail (50.5%), student housing (49.5%) and residential park homes (32%).
Andy McCabe, Handelsbanken district head, East of England said: “Our latest report highlights the true breadth and depth of investor appetite across the UK's varied regions and property sectors.
“As well as other advantages and opportunities, parts of the East of England region are particularly attractive from a yield perspective, all of which is helping this part of the country to have one of the fastest growing populations and economies in the UK.
“At Handelsbanken, our nationwide branch teams have an in-depth understanding of their respective markets, enabling them to offer valuable insights into local dynamics, emerging trends, and potential opportunities. We take pride in being a trusted partner, leveraging our on-the-ground presence to deliver personalised advice that aligns with our customers’ unique goals."
