British real estate retained its high liquidity in the tense year of 2020. In this sense, it loses to German, French and even Swiss real estate, the value of which was struck head-on by the pandemic. Experts, at first timidly, and now more and more boldly, speak of a real renaissance of the UK market.
The most resilient market of 2020
On the fact that the coronavirus pandemic, which suddenly came to Europe, seriously changed the balance of power in the global real estate market, wrote all the most respected analysts, including experts from Knight Frank and Savills. During this period, prices fell even in the medium price range, which has always enjoyed wide popularity among Europeans. The premium real estate sector remained relatively stable, but even here the prices are frozen, and developers who sell such houses and apartments, froze in anticipation of change.
The market of residential and commercial real estate in the UK on this crisis background looks very good. Properly organized quarantine, as well as targeted support for the construction industry by the UK government, allowed to avoid the worst-case scenario. In addition, a big role in stabilizing the market played the behavior of developers, who, believing that the difficulties are temporary, went through a slow decline in rates.
As a result, thanks to the achievements of 2019 and the right strategy at the beginning of the pandemic, UK real estate retained its status as the most liquid in Europe. As for the EU countries, many of them, under the influence of the coronavirus, were forced to significantly lower rates on square footage.
Offices in the center and housing in the suburbs
The new market reality, which took shape during the COVID-19 pandemic, was also reflected in the preferences of people planning to invest in real estate in the UK. Whereas before the spring of 2020, investors mainly focused on the liquidity of a particular property, after the quarantine, buyers became more interested in the size of the premises, the living/working conditions in them, as well as their location. Realtor companies had to respond quickly to the new trend by organizing all their activities according to it.
It is safe to say that the main trend in the British housing market in late 2020 – early 2021 will be the purchase of spacious country property. During the sudden onset of lockdowns (i.e. strict self-isolation) most people want to have a safe haven from the outside world. Therefore, large country mansions with a properly organized workplace are now more popular than ever. Britons by nature are lovers of home atmosphere, and now fate itself gives them the opportunity to build a career and earn money without leaving the confines of their household.
At the same time, business life in Greater London and other commercial areas of the United Kingdom did not stop during the pandemic either, although it became slightly less active. Office space continues to be in demand in the center of the British capital, which is essentially the intellectual center of global business. There is a shortage of vacant manufacturing space, which stimulates the work of developers, whose restrictions on activities, even during the strict quarantine, were quite lenient.