DTZ’s UK Fair Value Index™ increased to 72 in Q4 2014 from 64 in Q3, meaning that UK property has become more attractively priced for investors.
The sharp fall in the oil price has pushed UK inflation down to 0.3%, causing rate rises to be pushed back and boosting UK property’s attractiveness.
We believe that all UK property sectors (office, retail, industrial) are currently attractively priced, with the industrial sector the most appealing.
The Leeds retail market is the most underpriced market in the UK, while the London West End retail market is the most overpriced.
From the second half of this year we expect UK property’s attractiveness to diminish due to less favourable pricing and as bond yields rise.
Source : DTZ