The property sector looks on the road to recovery, new data from the Royal Institute of Chartered Surveyors has shown, with buyer interest at its highest level in more than two years.
According to RICS, property prices stabilised in March after months of decline, with house prices expected to return to growth in the next 12 months across all parts of the UK.
New buyer enquiries recorded a +8% net score in the month of March, the highest positive result since February 2022.
Similarly, the flow of new properties coming on to the market increased for a fourth consecutive month, with a net score of +13% noticing a pick up during March.
Daniel Austin, CEO and founder of ASK Partners, said: “The property sector is in recovery as the outlook has considerably improved. Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential.
“In the realm of commercial real estate, factors like physical condition, location and age significantly influence a property’s value. In the current market, the emphasis has shifted towards the importance of location and quality over the yield on debt or cost. We anticipate opportunistic acquisitions of prime properties in prime locations.”
Meanwhile, a separate study by RICS revealed that non traditional market segments such as aged care facilities, student housing and data centres are yielding the most robust returns.
Austin added: “With housing set to be a battleground point in this year’s election and as the sector moves to the top of the agenda for all parties, we hope to see a long-term plan for new homes, including social housing, however we expect we will see more short-term fixes.”
