Average property prices increased more in dentistry than any other business, according to the latest report from Christie & Co. Its Business Outlook 2017 looked at all the Christie & Co trading sectors with a full breakdown of price increases below:
- Dental +14.9%
- Restaurants +14.1%
- Pharmacy +12%
- Childcare +9.7%
- Retail +8.8%
- Hotels +6.0%
- Care +5%
- Pubs +4.4%.
'With dental practice prices rising by 14.9% in 2016 compared to 2015, it has clearly been a strong year for the sector,' Simon Hughes, managing director of the medical team at Christie & Co, said. 'The demand for mixed practices in particular has continued at a steady pace with multiple bids being received for each asset sold and the geopolitical landscape appears to have had no significant impact on the dental market to date.
This comes despite future changes to the NHS dental contract, which is currently expected to arrive in 2019/2020 and near zero growth in the NHS contract value year on year. 2017 may bring a change to the purchaser landscape at the corporate end of the market if Oasis and Mydental rein in their expansion plans. Recruitment will also remain a real challenge in the dental sector in the near future, particularly in rural locations across the UK.'
He continued 'Overall we expect the dental sector will continue to see steady transactional activity from a range of buyers throughout 2017. It remains a safe haven for private investors and family money, and banks are still keen to lend, which will keep the market buoyant and attractive to all buyers from first-time purchasers to large multiple operators.'