Market trends

Major market trends:

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The UK’s changing role in global markets

London will remain a leading global city, but will face near term uncertainty as the terms on which the UK leaves the EU are negotiated. We may see increased pressure on employment in financial services and related sectors as businesses assess whether London and the UK remain the best location for them. The weaker currency translates to higher input costs for retailers, with consumers potentially facing lower disposable incomes as inflation increases.

Population growth and urbanisation

The UK population is expected to grow from 65 million in 2015 to over 74 million in 2040. Much of the increase is expected to be in its largest cities, particularly London, where there is an increasing emphasis on attractive mixed use environments.

Transformative impact of technology

Technology is not only driving changes in how we work and shop, it is having a profound impact on the space we occupy. The ability to work remotely changes how we use office space, increasing the demand for flexible and co-working space. In response to online, retailers are developing sophisticated omni-channel strategies, and are using technology to respond to changing consumer behaviour.

Evolving worker and consumer expectations

The distinction between work and leisure time is increasingly blurred so people expect a range of amenities and services, and a choice of leisure and entertainment activities to form an integral part of the places where they work, shop and live. This is increasing demand for mixed use environments which are well integrated with local communities and provide a superior and differentiated offer.

Wellbeing and sustainability

People’s wellbeing is strongly influenced by the places where they spend time. Increasingly, companies are focusing on providing workspaces which promote wellbeing and increase productivity. The quality of workspace has become a tool to attract and retain key talent and retailers are choosing to locate their stores in environments which encourage customer loyalty. There is also a growing expectation that buildings should reflect environmental concerns.