The most recent forecast for the London housing market in 2017 and 2018 marks a return to growth with 3.3% and 2.5% RevPAR growth predicted respectively in each year, taking RevPAR to £120 in 2017 and £123 in 2018.
It can be expected that there will be serious growth in the first half of this year to build on from the strong sector performance at the end of 2016 driven by the fall in the pound and BREXIT. Not only that but the UK economic performance was a lot higher than expected, towards the end of last year. This
This year, though, we can expect all EU economies to expand and grow, which means that this is a fantastic time for investors. Whether you’re looking to invest in a small property, large properties, a hotel, office space and buildings or anything else of that kind, the future predictions mark a strong time in history.
Occupancy remains high but a growth of 0.9% could take occupancy up a percentage point to 82% this year and an ADR gain of 2.4% in 2017 taking rates to £146. A further 0.5% gain is expected in 2018 keeping occupancy levels at 82% with an ADR growth of 2% taking rates to £149. The average supply growth and security among travellers could stir things up a bit, so this is something to remain aware of.
By taking control of other external factors, it allows room for an investor to wholeheartedly focus on his business. Attracting the right clients and the right company to assist you along your investment journey, is an ultimate requirement that needs to be right. And the London housing market definitely seems to be moving from strength to strength.
Written by Gemma Smith