Reflections and Predictions23 Dec 2020
Reflections and my predictions …
Every morning since March, I am grateful to wake up working in the rental market – I cannot imagine the strain on all the restaurant, pub, café and club owners, not to mention the teams that work there.
And that’s only one industry that been so badly affected by this nightmare… the list goes on and on.
2020 has been a sh1t year but at least the property market seems to be less impacted than many others – the rental market has stayed much busier than I expected with demand continuing to outstrip supply in Glasgow.
Rents have continued to stay high, because of the shortage of good quality properties in good locations. I had expected to see an oversupply of “studenty” rental properties but we just haven’t seen that.
Areas which I look to for good returns are continuing to do well – Kinning Park, Govan, Bridgeton. Some investors remain keener than ever to plough their savings into property – I have also been seeing more investors willing to look at lower yields if they feel the overall return over the next 15 years will be good.
I don’t think we will see much change in the first half of 2021 – however, I do suspect that the upper mid-to-high-end sales market will start to slow. Investors will continue to like the high yields that Glasgow particularly generates – so mid-to-low end sales market will stay much the same.
Tenants will still be willing to pay good rents for good properties and we may even see the rental market get busier as first time buyers become less inclined and less able to buy. The demand for low to middle market rentals will continue to do well but upper-end rentals demand is likely to fall in 2021.