A Market Perspective from the Managing Director at KALMARs
Richard Kalmar brings forward insights leveraged through his 47 years of experience in the property business. Known for his straightforward and pragmatic communication style, Richard shares his perspective on the 2022/3 property market downturn in a manner that reflects both the challenges and the positive outlook for the coming years.
“With 47 years of experience in the property business, I’ve seen several market downturns, each presenting unique challenges.
The 2022/2023 period appears notably self-induced, marked by 14 interest rate rises, peculiarly aimed at managing international inflation. A surge in building regulations and other statutory controls, and the complexities of Brexit, all unfolding in the aftermath of the pandemic. These factors combined created a highly challenging landscape for 2023.
Who knows what 2024 holds, but, as an agent, I look at the positive outlook for what 2024 may bring. Interest rates have stabilised, and following the United States lead, they are likely to fall. Inflation in the construction sector has also steadied and with an election around the corner, the government is enhancing the feel-good factor. Most political parties are also acknowledging the need for planning processes to be expedited. Hopefully, there will be sensible adjustments in building regulations. This would make construction more feasible, aided by advancements in AI to enhance and streamline various processes.
In terms of property, the work-from-home model is likely to stabilise, aligning supply with demand. Similarly, there’s anticipated stability in online shopping demand and industrial yields, which have flip-flopped around significantly, to steady at a reasonable rate. Residential rents, particularly in London, are expected to level out to prevent them from becoming entirely unaffordable. Although, the ongoing lack of supply in London remains, coupled with steady interest rates and mortgages currently being available at nearly 4%, which is close to the 10-year average, the residential market should start to slowly recover.
Here at KALMARs we have seen it all before and have navigated through various economic downturns and market fluctuations, but with our resilience and expertise in the real estate industry and our 55-year track record of adapting to changing landscapes, we look forward to helping our clients through these choppy waters.”
A Market Perspective from the Managing Director at KALMARs