Green shoots emerging as real estate eyes recovery
It’s #week31 at Paperclip and despite typically British skies, summer holiday season is here. For many this offers a chance to relax and reflect on the state of the market, perhaps from the comfort of a (hopefully dry) sun lounger.
?
There’s no doubt that a holiday is needed after a challenging time at the coalface. Across the UK and Europe, transaction volumes have been very subdued, as economic concerns and general uncertainty have weighed heavily on the market. The results being reported by JLL and the other big agencies indicate just how tough things have been for those reliant on transactional-based revenue.
?
Agents are a good barometer of the health of the industry as a whole, and while most are still warning of some pain to come, there is a notable tone of cautious optimism in what they are saying. Barry Goshin of Newmark speaks for many when he sees activity teetering on “the cusp of a new market”. And it is not just talk: firms such as CBRE are working on major merger and acquisition deals, as sure a sign as any that the jostling for market position is gaining pace.
?
Paths are emerging to improved business, with many spotting the early signs of a capital markets thaw that will catalyse recovery. Predictions are that the UK will narrowly avoid recession over the rest of 2023 and see a modest recovery in 2024 as falling inflation helps to restore spending power. This optimism extends beyond the UK: the European commercial market has repriced at unprecedented speed, and growing demand means that things are looking up.
?
These are all good signs for the sector, and indicative of the proverbial ‘green shoots’ of recovery. Real estate has always been cyclical; with any luck, the industry is turning a crucial corner.
Events coming up:
Reason to smile:
Regular Paperclip readers will know that one of the drums we like to beat is the need for innovation in real estate, to take old assets and repurpose them into new uses more suited to today’s needs.
?
But even we were somewhat surprised by the story of an entrepreneur who has paid ￡25,000 at auction for a disused stairwell in Twickenham, south west London, with the aim of converting it into a “multi storey retail space”.
?
The stairwell, which no longer serves the block it is attached to, was bought by Simon Squibb, whose vision is “for each of the floors to have a different pop-up business – it might have a designed showcasing their new line of clothes on one floor, a coffee shop on another and a new restaurant at the top.”
?
Great to see some fresh thinking on otherwise redundant real estate, and everyone at Paperclip looks forward to seeing the final result of what is clearly am ambitious plan on many levels.
Innesco is the leading independent authority on purposeful real estate marketing and message - unlocking significant growth and transformation. We are experts within the global real estate sector and the built environment. Established in 2009 and headquartered in London, we are a truly global organisation with affiliate offices in Spain, France, Sweden, Germany, Abu Dhabi, Dubai and South Africa.
For more information visit?our website.
To find out how we can help you navigate communications in a post-covid world, click?here.?
Social Media and our podcast series