A research produced by
UK GDP is estimated to have grown by 1.0% in Q3 and, even allowing for 'exceptionals', together with upward revisions to Q2, this suggests underlying economic growth is positive.
In the office market, take-up dropped back again in the City and West End - but TMT occupiers are expanding, helping to offset declining demand from the finance sector.
Whilst retail sales growth has been positive, the market remains fragile - administrations continue to drive up vacancy rates, particularly in the regions, leading to rental value falls.
London remains the exception, but even here, rental value growth has stalled.
London office transaction volumes have been abode the long-term average for the last three quarters. While foreign investors continue to account for a larger proportion tha usual, purchases by domestic investors were up by 50% over the quarter.
Source : AXA Real Estate
