Roll on 2022! Happy New Year to you and I hope you’ve had a fantastic holiday season! Our team at Track Capital are already hard at work, gearing up to get the best deals through for our clients.
Whatever your investment goals are for 2022, let us know. We would love to see how we can help make your journey a success.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.
Remember, you can also listen to this week’s newsletter on the podcast as well.
We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.
Property News This Week
Supply-Demand Imbalance will Continue into 2022 – 2021 has been a difficult year for housebuilders and unfortunately, it doesn’t seem like the end is near in sight according to the WhatHouse? Predictions Report 22. Responses from participants revealed that even though 71% feel tentatively hopeful for 2022, 73% foresee a continuation of the supply chain issues that plagued 2021. Uncertainty regarding the increase of material costs and general inflation are expected to restrain project completion dates, worsened by a shortfall of workforce, planning constraints and issues concerning logistics all accounted for much of the results of this report. This is likely to have a negative impact across both the buying and rental sectors of the UK property market.
- Report Says Head to Nottingham for the Best Yield in the UK – Track Capital has crunched the data for rental properties in the UK and discovered that both top-performing postcodes for yield belong to Nottingham, where gross yield sits at a very healthy 11%. Bradford, Manchester and Newcastle upon Tyne all follow closely behind, with gross yields hovering around the 10% mark. The performances of these cities are especially impressive when compared to the average UK rental yield, currently sitting at 3.63%. According to Track Capital’s Director Nick Hyland, the data clearly points to cities where rents are relatively high but prices still low are for the best gross yields – often the areas where young professionals and students want to live. A high proportion of these demographics, where residents are largely aged between 20-24 and are located in either city centre locations or close commuting distance, creates a recipe for a very strong rental market.
- Prime London Property Demand Continues to Climb – According to the PCL Homebuyer Demand Index by prime property experts Benham and Reeves, London’s Prime market has continued to excel throughout the last quarter of 2021. Foreign buyers have started to capitalise on the softening of travel restrictions to renew their interest in premium London properties and expand their portfolios, resulting in homebuyer demand rising by 4% on a quarterly basis and being 7.8% higher annually. London’s South West Prime market has experienced the best growth among the higher-end boroughs. Even though issues are still present from the latest wave of the pandemic, demand for prime homes in the capital remains healthy. In the central prime market, we can now see clear demand – a stark contrast to the situation at the onset of the pandemic. This is very encouraging for the year ahead.
- Last Year’s Dubai Real Estate Transactions Totalled Dhs300bn – The annual transaction report by the DLD has revealed that Dubai’s real estate transactions in 2021 were valued at Dhs 300bn, the total of 84,772 transactions. The total value of the transactions demonstrates an increase of 71% in value when compared with 2020 and a staggering 65% growth of property transaction numbers. This amount of overall growth indicates investors’ confidence in Dubai real estate, no doubt influenced by the city’s smooth infrastructure and responsive policies. Dubai’s goal for its future success is decisive, clear, and strongly supported by its growing partnership with the worldwide investment community. This collective effort will be essential for Dubai’s aspirations of growth which, by all accounts, is fast nearing a reality.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.