Despite the economic uncertainty, large portfolio professional landlords are in a confident mood, with the majority planning to acquire at least one new asset in the coming year.

This is according to independent research conducted on behalf of property business expert Handelsbanken.

The study shows that six out of 10 are set to acquire more properties in the year ahead and of these, over half plan to diversify into new sectors with offices (43%) attracting the most interest as investors look to take advantage of depressed valuations. Just 14% expect to sell some or all their properties.

The vast majority (92%) expect to see valuations rebound, with London and the South East cited as most attractive regions

The Handelsbanken Professional Landlords Survey is a nationwide study among large UK investors with an average of 29 properties worth around  £14m each.

Over half (57%) of those looking to buy more properties also plan to diversify into new sectors, with offices (43%) attracting the most interest as investors look to take advantage of depressed valuations.

The overwhelming majority of respondents (92%) expect the value of their portfolio to increase over the next 12 months, with 39% predicting it will grow by over 20%. Only 8% think it will broadly stay the same.

Handelsbanken chief economist James Sproule, says the bottoming out of commercial property prices in Q1 2023 corresponds with reasonably positive sentiment expressed towards the sector in this survey.

“Commercial property values saw a major correction in the second half of 2022 as a direct impact of the higher interest rate environment. Average retail property prices were down by 15%, office prices were also down by 15%, and industrial unit prices were down by 25%”.

“In addition, there are the ongoing considerations around post-pandemic working practices and retailing habits which, until they are more settled, will be weighing on commercial property valuations.”