Property investment booming
21 July 2004
Optimism in UK property investment is up, with a positive increase recorded in most of the English regions.
The latest CBI/GVA Grimley survey of property holdings in Britain found that in England there has been a rise of optimism in the Eastern region (22 per cent of respondents expect to buy more property), the Midlands (18 per cent) and the North (14 per cent).
The South West and Wales saw a marked drop in expected demand to 11 per cent, on a par with London and the South East, but all areas recorded a strong demand for property.
However, Scotland remains the least optimistic region for property investment in the UK, with a positive balance of just two per cent, unchanged from the last survey, The Scotsman reports.
The survey predicts that the next six months will see a "reasonably healthy" level of occupier property demand. The CBI also points out that a strong economic outlook in the UK should feed through into higher levels of property demand.
Meanwhile, the office sector is expected to see an increase in property holdings, with banking, finance, insurance and business services particularly positive about the demand for office space.
The survey states: "The last six months have seen an improvement in business optimism and output and the next six months will see even greater gains. We except greater levels of property demand to feed through. Companies now appear to have used up spare capacity in their labour forces.”