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ARTICLE · 09 JANUARY 2012

Room For Manoeuvre?

One of the starkest, and ongoing, effects of the economic downturn on the property sector has been the creation of a two-tier market.

United KingdomReal Estate and Construction
Sue O'Brien
Sue O'Brien
Andrew Davies
Andrew Davies

This article appeared in the Estates Gazette in 11 July 2011.

One of the starkest, and ongoing, effects of the economic downturn on the property sector has been the creation of a two-tier market. In residential, commercial, leisure or even agricultural space, the flight to quality has seen prime assets rise in value over the past 18 months, while secondary properties have languished stubbornly close to their 2009 lows.

Such a two-tier effect has also established itself within the market for residential development sites. Well-located sites that are suitable for high-end residential development (limited, except in a few cases, to the south-east of England) command values far beyond plots that are suitable for only high-density housing focused towards first-time buyers.

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