Analysts are confident that despite the battle against Covid-19, commercial property as an investment looks quite promising.

We have finally achieved a deal to leave the European Union lifting the cloud of uncertainty that has shadowed the UK since 2016 and together with the vaccination program, should help boost growth rates as we move into the later part of 2021.

Miles Gibson, executive director of U.K. research for real-estate-services firm CBRE has forecasted a lift in real estate by up to 30% in 2021 vs 2020 while Colliers International predicts commercial property investment in the U.K. will accelerate by 36%.

Even last year, there were signs that demand for London offices was returning with investors spending £5 billion in the second half of 2020, according to Daryl Perry, head of U.K. research at Avison Young. The Singapore investment firm, Sun Venture, made the biggest transaction with its £552 million purchase of 1&2 New Ludgate in The City of London, the capital’s historic financial district.

Office working may change but we still expect to see a return to office working even if this is on a more flexible footing. We also anticipate that once the current lockdown is lifted, the leisure industry will begin its recovery gaining pace quickly due to the pent up demand for ‘UK staycations’.

So what about residential property?

The UK residential property market boomed in 2020, with house prices ending the year at a record high, despite the shutdown of the sector during the first coronavirus lockdown.

Government measures such as the stamp duty holiday helped revitalise the market, while the lifting of lockdown restrictions prompted a surge in demand. However, our view is that with the end of the stamp duty holiday and Help to Buy this year, as well as the end of the furlough scheme – which is expected to cause a spike in unemployment – we will probably see a more subdued housing market in 2021 which we anticipate will gain pace again in 2022.