The potential yield, capital gains, and the current situation are the best determinants for an investment decision for which Leeds compares favourably with all other cities. However, we consider Leeds to be property heaven for large and small businesses alike during the next five years due to several factors outlined below.
Leeds is one of the largest and most centrally located cities in West Yorkshire UK. Known for its expanding business, famous shopping malls, and nightlife attractions, fuelled by the many events, attractions, music festivals city museum, tourism has become a popular spot in Leeds rising by 6.3% alone from 2016 to 2017.
Not only is a good spot for tourism, thriving economic prospects, and population growth, have created a surge in demand for living space from potential tenants and is one of the best property investment UK areas. Amongst a desirable area to live, work, and study, capital growth, and the rising rental yields have taken over precedence to consider Leeds as the main property investment area.
The prices of property in Leeds compared with other cities within the UK suggest that Leeds is the best and most lucrative area for investment. Leeds property market has benefitted from factors such as high yields, growth, and strong demand. Leeds has a demand from young professional tenants with its population growing by 151% over the last decade, which has put pressure on housing. Leeds is struggling to meet housing demands, with 90,000 new homes needed by 2021 but only 60,000 in the pipeline.
Leeds has become attractive and an interesting market for property investment. According to several studies conducted into the property market and views of the market specialists, the property market of Leeds has successfully braved the challenges posed by Covid19 well, and the city and the Yorkshire region are now fully set to benefit from strong industrial demand. The rapid rise in eCommerce has been significant for the industrial sector pushing up rentals and yields.
The demand for office space in Leeds and the development of new offices remained strong in 2020 as circumstances point out sufficient requirements for new occupiers. However, there is a general perception that for office purposes the same amount of office space as used historically would not be required any more. However quality space with state of arts facilities and those that promote strong mental health and employee wellbeing will continue to remain in demand.
Though the activity levels dropped during the first lockdown, however later the stronger recovery in activity has been remarkable as continued lending by banks has underpinned asset prices and limited the fall in transactional volumes. Industrial growth and that of logistics has pushed rental apartments and high-quality housing planning and sped up the development process in prime city centre spots and well-connected suburban locations. Expectations are that the current momentum will continue throughout 2021 and ahead with the momentum in the economy.
While the pandemic will see significant increase in insolvency levels with implications in certain areas of the economy, business owners, investors and lenders are already geared to capitalize on the property, business, and asset opportunities during these uncertain times.
Commercial property sector in Yorkshire is now focusing on factors such as technology, climate changes, rise in working from home and increased need for safety which is expected to lead to a fundamental change in the purpose and design of the new buildings, especially offices.
Recent data from JLL, a global commercial real estate services company, has marked Leeds as one of the best housing markets in UK. JLL estimates that between 2021 and 2026, house prices in the city will increase by 13.5% with rental yields to grow between 2.5 -3% from 2022-25.
Its property market outperformed other UK cities average for 2021 and is expected beyond with property prices increasing by over 9.26% as compared to a UK average of 7.5% during this period.
The slow growth private housing construction in Leeds due to the pandemic, population growth, booming economy leading to shortfall in new housing, all will ensure that Leeds continues to be at the forefront of the UK’s property market. This being the trend set to continue, it is the appropriate time to make property investment in Leeds.
Leeds also lead when it came to transaction volumes witnessing a high volume and some of the highest rises in the number of sales completed during 2020, despite the pandemic and lockdowns. This makes Leeds as a secure and top choice for businesses and people relocating from other parts of the country, with the city’s sales levels expected to remain sustainable.