A new report released by international real estate adviser, Savills, indicates that land prices are being boosted by demand from developers. Price growth is continuing to be led by the South East, but overall growth is improving across the UK.
The report also shows that “improved confidence in the continued return towards functioning markets” has served to increase the value of large sites measuring over 30 acres.
The data indicates that the value of 30-acre sites went up by 7.5 per cent in 2013 and increased by 3.7 per cent in Q4 alone.
Strategic land has also come back into play. Investors, developers, and financiers are committing to the UK market recovery in the stronger markets. They are looking to sell property quickly enough to turn a profit so that they can generate a quick return on capital. Many of these sites, which stalled in the downturn, are now entering a new phase of activity, and plans are being reevaluated for the new market conditions.
The survey confirms that there has been significant improvement in sentiment. Of 90 locations surveyed, 76 per cent reported positive sentiment in the last quarter of 2013. In the preceding three months, 69 per cent reported positive sentiment.
The number of locations reporting price rises on closed deals rose sharply. A full 68 per cent of green field locations reported a value increase compared to 31 per cent of in the third quarter.
