According to Tarrant Parsons, an economist at the Royal Institute of Chartered Surveyors (RICS) in Britain, the real estate sector in Britain is expected to experience an increase in trading volumes and investment in the next six months, Invest-Gate reports.

This projection comes as market concerns about high interest rates decline.

Parsons explained that the primary pressure on companies’ liquidity stems from the high cost of borrowing, while inflation erodes profit margins. If inflation decreases or its growth slows, it could provide support by increasing available liquidity for companies. Additionally, if borrowing costs decrease from their current high levels, the pressure on companies may ease. However, despite any improvements, challenges are still expected to persist for companies over the next 12 months.

Regarding the real estate market, Parsons highlighted a notable difference between luxury commercial real estate and secondary commercial real estate, particularly in the office market. The office market continues to face challenges, and prices of vacant offices have risen throughout the year.

Parsons pointed out that the industrial facilities market presents the most promising outlook in the commercial real estate sector. This market has received significant support due to the growing shift towards e-commerce and online shopping.