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business
The sector saw a Total Return of 13.1%
in 2015 (IPD), down on the 17.8%
achieved in 2014, although this was
expected as the pace of capital value
growth stabilised. The strength of the
UK economy, despite weakness in
the Far East and Europe, underpinned
this performance. While 2015 IPD
performance figures for the County
are not yet available, the 2014 results
underline the trend we expect to be
confirmed for 2015.
Demand for office space has shown a
marked improvement over the last 12
months aided by improved business
investment and confidence. The upturn
extends well beyond central London.
Regional centres that have seen limited
development since the financial crisis
and accessible locations in the South
East have enjoyed improved activity
and rising rents or signals of growth to
come. Kent is no exception, with the
return of rental growth in 2014, the first
upturn since 2008. The upturn is
significant. The recent past has left
rents in Kent relatively affordable when
compared to many other South East
markets. As a result, accessible towns
offering a quality work environment are
proving attractive to relocating and
expanding businesses.
Rising real incomes has been positive
for the retail sector, which turned a
corner in 2014, both nationally and in
Kent. Following five years of decline,
Property Market
The UK property market delivered a robust performance over the last
12 months despite the return of global economic concerns.
Discovery Park, Sandwich near Dover, credit: Discovery Park Limited
Kent’s average retail rent stabilised.
This masks a mixed picture with some
markets showing strong rental growth
and high demand from premium
retailers and restaurant chains. Similarly,
the county’s retail warehouse sector
outperformed both the UK and South
East rental growth average. Strong
demand from retailers across the county
and the development of quality parks
has driven performance. Overall, the
retail sector continues to wrestle with
structural change and competition,
which will drive the demand for space
in terms of volume and location.
The distribution sector has expanded as
a result of this structural change over
recent years, although the market has
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