Property industry set to lead economy out of the Covid slump

The property sector is set to lead the UK out of its Covid slump according to Ernst & Young’s latest forecast.  

Employment in the real estate sector is forecast to grow by 1.39 per cent by 2023 compared with 2019 - that’s the highest of all sectors according to EY. 

When measured by Gross Value Added the real estate sector is forecast grow by the equivalent of 0.85 per cent by 2023 compared to 2019, behind only the health sector. 

By comparison, the total UK economy is forecast to grow only by the equivalent of 0.14 per cent annually.

EY’s’s head of real estate Russell Gardner says: “Many investors will be re-imagining what future real estate will need to offer following the significant impact of the pandemic on the way we live and work. There will be growth opportunities for the sector as the country reinvigorates and reinvents our high streets and city centres.”

The forecast shows sector performance will experience regional inequalities, with the largest growth in employment found in the South East excluding London, the North West and the East Midlands  between 1.75 and 1.85 per cent. 

The regions with the smallest growth in sector employment are the West Midlands, Yorkshire & the Humber and the North East, all 0.81 per cent or less.

The GVA measure shows a similar pattern.

Gardner adds: “The forced extended pause in activity during 2020 coupled with the need to reshape and re-animate our towns and cities will mean that 2021 may well turn out to be a landmark year for the real estate industry in the UK. Our major cities will see the lion’s share of growth and jobs as they rebound and evolve into a new normal.”