The real estate market in the UK is not unaffected by the global aspects. Experts feel that though the 2017 shows a promising start, there could be several ups and downs in the coming months depending on the overall market trends in the US and worldwide. Interested in knowing the top ten aspects? Here are they.
Political issues, instability and frequent change in the policy will keep the uncertainty high. In spite of the fact that the investment in real estate will continue to be a lucrative choice, frequent ups and downs will make the profit booking difficult. Volatility in the prices will be quite high. Here are the top five things that will rule the real estate market.
Debt market will shrink further
Not only buyers are reluctant to go for debts today due to economic instability, but regulations also make it further difficult. The debt market is slowing down. As a result, several insurance companies that have been investing in the real estate are finding it difficult as they achieve the maximum allocation limits.
There is a demographic shift in buyers
Yes, there has been a big shift in the age-group of buyers. Today, we have more young buyers in the age group 20 to 35 as against the age group of 50 to 70. It is quite obvious that the buyers are more skeptical and keen about technical details. They want the best value for money and not ready to compromise on quality. When the same property is under consideration, young buyers win the race.
More urbanization happens due to infrastructure development
It is visible in the most parts of the UK. People are moving outskirts because they want residential complexes in the lap of nature. However, in the process, there is a heavy urbanization happening all around. When a residential area gets developed, it requires approach roads, shopping centers, schools, movie halls and restaurants.
Thus, the whole area becomes crowded and loses the natural looks. Experts say that the trend looks to be continued in the coming years.
Global political scenario will be volatile
Last year we saw a lot of turmoil in the political scenario worldwide. It had a great impact on the real estate business. The coming year also brings several new developments at the global, national and local levels. Social issues, taxation issues, and other economical aspects will get affected by it.
As a result, the real estate market will be quite volatile and dynamic in 2017. Experts feel that all predictions will go haywire. Hence, investors, buyers, and real estate providers; all need to be cautious. Taking undue risk may become problematic.
The definition of so-called ‘middle class’ will change further
In the past three decades, there has been a tremendous change in the economic distribution. The so-called middle class is disappearing pretty fast. The same trend will continue further and there will be no existence of it in future.
These are the predicted trends that may change the face of real estate market in the UK.