UK Economic and Real Estate Briefing – January 2021
The UK economy is likely to re-enter technical recession in Q1 2021, with two consecutive quarters of negative growth. For real estate, despite the market coming to a near standstill in Q2, overall 2020 volume still reached £42.4bn thanks to strong demand in the core office, logistics and residential sectors
Normal economic activity is expected to resume in March as restrictions begin to ease. A rebound in activity will come through in April and May, but the recovery is reliant on the successful rollout of the vaccine.
With a return to relative normality in sight and the market adapting to a post-Brexit economy, we expect investment volume to recover to circa £51.0bn in 2021. This will be driven by the continuing recovery in the Central London market, where volume should increase to c. £15bn.