Victoria had an amazing run in the year to January 2016 with completions and lettings of some dramatic new developments as well as other large scale schemes being well underway.
The year was characterised by a surprise conservative majority in the General Election and a steady economy, resulting in continued confidence in the commercial property market, with demand remaining strong in most markets. At the same time the residential market has remained positive, although the super prime market suffered from a perceived over supply, as well as changes to Stamp Duty. In Victoria specifically, the Land Securities’ and Transport for London developments around the station are finally nearing completion, bringing to an end perhaps the most significant phase of Victoria’s transformation in terms of both occupational space as well as infrastructure and amenity offering.
Take-up fell sharply and availability at the end of the year was at a twenty year low. However, when one digs in to the figures and the reasons for them, it was a transformative year for Victoria, which has seen it achieve a status not held previously.
The planning regime has begun to change, but the much trumpeted September 2015 deadline came and went with little change yet evidenced. Further clarity is expected during 2016, with less office to residential conversion likely to be permitted.
Residential and commercial values are close to parity, as commercial rents and yields steam ahead and residential values soften.
The increase in investment activity slowed but turnover still remains at the highest levels ever seen at £1.75 billion.
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