2015 was a strong year for UK real estate, which delivered high returns in comparison to other asset classes. Based on IPD data, the annual total return of all property in 2015 was 13.1%, which is almost ten times higher than that of UK 10 years’ gilts and outperforms traditional financial assets such as stocks and bonds. The yield gap, in 2015 was 11%. Among all the properties, office and industrial properties have strong performance in 2015, delivering total return at 17.7% and 16.8%.
Huge levels of domestic and international investment are making Manchester a thriving and vibrant city with great potential. In 22 March 2016, Chairman of Gibbs Investment, Philip Gibbs, joined the UK Smart Cities Mission to Taipei, discussing investment opportunities with the most successful real estate developers and well-known real estate investors in Taiwan.
In 2016, we expect that domestic and international demand for prime and good secondary assets will continue to be robust. Especially with Chancellor George Osborne’s announcement of Northern Powerhouse investment plan which worth £7bn, key regional cities including Manchester, Liverpool start to receive more interests from Asian investors.
Featured Image: Phil Gibbs with the Vice Premier of Taiwan, Woody Duh, visiting Gibbs Investment and the UKTI delegation at Smart Cities Expo in Taipei 23 March 2016