UK Economic and Real Estate Briefing – February 2021
UK economy avoids a double dip recession. The foundations of a robust recovery in the second half of this year are in place. 2021 should also mark the start of a recovery in UK investment activity as the end of the pandemic boosts investor confidence.
The UK economy avoids a double dip recession as growth surprises to the upside in the final quarter of 2020. We are unlikely to witness the fall in economic activity we saw in Q2 2020 in the coming months. Nonetheless growth is still likely to be negative in the first quarter of this year (-5.7%).
For the real estate sector, it has been a mixed start to the year. The Central London investment market started slowly despite significant weight of capital, while significant capital continues to be deployed into logistics and residential platforms.