In its recently published Economic and Property Market Report, Bilfinger GVA paints a positive picture for the commercial property sector across Wales.
Peter Constantine, Regional Senior Director at Bilfinger GVA in Cardiff says, “With calm after the Brexit storm, consumer confidence starting to bounce back, and recent business surveys giving a positive outcome, the new economic outlook is brighter than previously anticipated.
“Brexit has not altered the UK’s fundamental advantages: the property market in the UK has scale, liquidity and transparency; the UK has world class educational and technological institutions, we have a skilled and flexible workforce, combined with low growth and uncertainty in other European markets.
“We remain optimistic about the prospects for Cardiff’s occupier and investment markets, buoyed by the positive picture that the first two quarters of 2016 have painted, and confident that the regional market will prove robust and dynamic enough to adjust to the new world being forged by the UK as a whole.”
The Economic and Property Market Report outlines how earlier this year a £1.2bn City Deal for the Cardiff Capital Region was confirmed with the backers confident it could create 25,000 new jobs and leverage in a further £4bn of private sector investment into the city. The Deal includes £743m for the South Wales Metro, bringing better rail and bus travel to the capital and valleys.
There are also significant planned improvements to the existing transport infrastructure across Wales with the major project being the electrification of the Cardiff to London Main Line, reducing the journey time to 1 hour 45 minutes, compared to the current typical journey time of 2 hours and 7 minutes.
Tom Merrifield, Bilfinger GVA’s Director of Agency, says, “Cardiff’s office market has seen a string of new projects either under development or in the pipeline, with the first two quarters of 2016 having been a key date for many. Completions of schemes at 1 Central Square and at 2 Capital Quarter have been supported by the announcement of significant lettings with occupiers taking large swathes of space in single transactions – the most recent being 70,000 sq ft to Motonovo.
“Further notable schemes include the revamping of existing offices of the former Bank of Wales property, now 2 Kingsway, where high quality Grade A accommodation is available over multiple floors.”
Cardiff city centre has experienced a boost in retail jobs and trade following the extension to the St David’s Centre, which is now home to the largest H&M department store (46,000 sq ft) in the UK. The leisure sector has also seen popular restaurants such as Cote Brasserie and Five Guys expand their presence in the city.
“However, the lack of available quality stock in the industrial sector has reduced activity in the market,” continues Tom Merrifield. “Yet we have seen notable demand for freehold older stock which has been offered at lower capital value levels, particularly in the South Wales valleys.”
The Bilfinger GVA Economic and Property Market Report is attached.