The latest Acuitus UK Commercial Property Auction Review attracted a wide range of Acuitus clients to the King’s Fund in London to hear the latest analysis of the market and how this may impact investor behaviour in the run-up to the end of 2024.
- Economist Malcolm White of BW Investor Services highlighted that we have seen a hardening of yields in Q2 2024 having reached the cyclical peak towards the end of last year. This indicates that we may have reached an inflection point in the market and the general direction of travel may be towards a strengthening of yields.
- Stuart Buchanan of Acuitus Finance gave an update on the all-important interest rate question and current finance lending terms and availability. The 5-year swap rate market is a good indicator of the direction where rates are heading, and indicate consensus around 3.00-3.25% BOE base rate in the longer term.
- Investment Director, David Margolis shared insights based upon actual examples on what’s happening in auctions including what’s selling, who’s buying and the investment characteristics that are driving demand and pricing. One area of real interest is the arrival of new buyers – many of whom are looking for an alternative to the residential buy-to-let market and seeking out commercial assets with development opportunities or a potential change of use.
- Acuitus Chairman, Richard Auterac, whilst welcoming the fresh buying power brought by new investors, stressed the importance of these investors being properly guided on the nuances of the commercial market so that they will be able to efficiently access the market and continue with sustained, successful investment.
To view highlights from the seminar, please click on the video below, and if you’d like to attend these seminars in future, please contact richard.auterac@acuitus.co.uk
