In light of DTZ upgrading Newcastle’s industrial market to ‘hot,’ Simon Morris believes it could be a valuable investment option for any UK property investment fund.
Simon Morris, the Independent Property Specialist
Simon Morris’ role as an independent property specialist who advises UK property investment funds on how to maximise profit potential on their property investment portfolios, means it’s his job to identify upcoming property investment hotspots.
One way to do so, is to use DTZ’s system to grade property markets; ‘cool,’ ‘warm,’ and ‘hot.’ These grades determine how undervalued a given market is for the quarter in question. Therefore, DTZ’s grading system allows you to determine which markets will hold the most potential return volumes for your investment.
DTZ Reveals Hottest Property Markets in UK Right Now
Last week, the Simon Morris blog reported on Manchester retail’s prominence as the hottest individual market. It replaced Leeds industrial as the most undervalued property market at 13.6%. Yet Manchester and Leeds weren’t the only property markets that rose to greater prominence in the latest DTZ report.
According to Business News Daily, Newcastle’s industrial sector, which was downgraded to ‘warm’ in DTZ’s first quarterly report, was upgraded to ‘hot’ in its second quarterly release. Essentially, the report concluded that it is no longer under-priced by less than 5% its market value.
North-East Markets Prove Hot Property Investment Opportunities
Senior Director and Head of DTZ Newcastle’s investment team, Richard Turner, commented on the figures. Turner said that: “Regional cities are forecast to deliver the highest returns across all sectors, with all Newcastle’s markets classified as either warm or hot, representing under-pricing. The North east currently benefits from higher income yields which boost total expected returns. This factor combined with a strengthening of occupational markets means that investments are expected to outperform.”
“Industrial is the standout sector in the North East, benefitting from a higher income yield compared to retail and offices a situation mirrored around the country where all 10 of the UK’s industrial markets are currently rated around or below fair value. We expect to continue to see strong demand for all grades of investment in all sectors in Newcastle driven by the weight of capital seeking opportunities for outperformance. “
Simon Morris Comments on the Need to Keep Track of Property Trends
As Simon Morris effectively shows in his property investment guide, careful consideration must be prioritised to effectively invest in the UK property market. UK property investment funds must be able to identify the markets that hold the most potential to generate significant returns for their property investment portfolios.
That is why Simon Morris believes that UK property investment funds need to take note Newcastle industrial’s upgrading. It clearly shows that right now, this market has the capability to generate significant revenue for any well balanced property investment portfolio.