East Midlands property market remains resilient despite uncertainty

According to recent reports, the East Midlands’ property market remained resilient throughout 2018 despite a backdrop of political uncertainty.

The company’s Market Insite report, which monitors trends in the regional property market across Nottingham, Derby and Leicester, highlighted a positive year across the region with keen interest from owner-occupiers for freehold property. It also showcased strong performances in the office and industrial sectors throughout the East Midlands.

Across the region, the 2018 report highlights:

  • Prime industrial rents in both Derby and Leicester increased, driven by a lack of supply – while availability in Nottingham hit a five-year low
  • Prime office rents in Leicester reached record high of £18 per sq ft
  • In Nottingham, office take-up reached a record level of 733,600 sq ft, bolstered by HMRC’s commitment to 275,000 sq ft at Sladen Estates’ Unity Square scheme
  • Investment in the region was boosted by forward funding at Unity Square in Nottingham and the sale of a 50% stake at Highcross in Leicester

Tim Garratt (Managing Director at Innes England) said: “Much like the previous year, 2018 was a turbulent one filled with political uncertainty but despite that, the East Midlands property market is generally performing well.

Leicester has cemented itself as a distribution hub in recent years, so it is unsurprising that this trend continued in 2018 – helped by significant lettings to GEODIS of 277,000 sq ft at Optimus Point and the development of 320,000 sq ft by DPD at Hinckley Park.

In Derby, the smaller shed market is thriving with lots of deals on units of less than 20,000 sq ft taking place throughout the year.

The retail sector has made headlines in 2018 thanks to challenges from changing consumer habits, but the East Midlands has remained steady – with Leicester the standout performer.

We asked one of our Lettings Negotiators what their take on the article was, and why they feel the East Midlands property market has remained resilient:

“The East Midlands property market has remained resilient in my opinion due to two overriding factors; The first being its proximity to London and other areas of England, easy access to the M1 and a central train station allowing commuting or travelling to other parts of the country relatively easy. The second reason is due to a lack of supply within the region, while demand remains strong, the lack of supply for both letting and sale properties is causing prices to be driven up well above the national average.”

Sarah Law, Lettings Negotiator at Readings Property Group

Information for this post was sourced from this article