2013 is expected to mark the bottoming-out of the UK commercial
property market, with recovery expected towards the end of the
year, according to the latest real estate predictions from
Deloitte.

The downward trend of the nation's commercial capital values is
forecast to be no more, as investors seek to focus their attention
outside of their core markets for the first time in a number of
months.

Financial consultants, Deloitte believe that despite the
continued uncertainty within global and European markets there is
enough evidence to suggest that the UK can make positive steps
forward in the coming months.

Anthony Duggan, partner and head of real estate research at
Deloitte, said: "Our prediction that we'll reach the bottom of the
market this year could be seen as heroic given the uncertainties in
the global, European and UK economies but we believe there are
enough compelling reasons to support the idea and expect that
investors will increasingly be looking for opportunities outside
the narrow focus on prime property we have seen most concentrate on
over the last few years."

Fresh overseas investment is also said to be imminent, exceeding
the amount recorded for purchasing real estate in 2012.

Andy Rothery, head of Deloitte Real Estate, added: "Along with
the utilisation of alternative lending streams, we expect to see
the UK commercial and residential markets boosted by more than
£20bn of investment coming from overseas in 2013.

"Many overseas investors are looking for stable, incoming
producing assets with bond-like characteristics. The UK is well
placed to meet such needs and we expect that the appeal of the real
estate to overseas capital will remain."

Looking toward the private sector, Deloitte also notes the
increasing impact of modern technology on the way office buildings
may be built in future years.

"Similar changes can be seen in the office market where a need
to reduce build costs alongside flexible working practices such as
activity-based working, cloud computing and 'bring your own device'
schemes are altering the way that office buildings might be built
in the future."

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