The prime residential market in London is said to have received a major boost as a result of the recent general election result, but is the news as positive for the commercial real estate sector?
It seems so, as commercial property agents in London, along with other experts in the field, are confident that continued economic growth, low interest rates, strong employment, booming inward investment and low inflation mark a bright immediate future for the commercial market.
This should only add to the success seen in the first quarter of 2015 – the strongest ever over the past 15 years. Quarter one saw investment in the country reach more than £17 billion.
Central London saw a turnover of £3.1 billion, a rise of 28 per cent on the previous year, and a little over 60 per cent of this figure came from those classed as non-domestic buyers. The first third of the year saw £5.4 billion of purchases by non-domestic buyers outside London, not counting the billions spent in the capital.
Other data just released suggests that the commercial property investment activity in Central London reached a total of £4.26 billion in the first quarter of the year – an impressive start.
The £3.4 billion volume figure, meanwhile, was a massive 42 per cent above the average over a five-year period. Volumes in the City were equal to the first quarter of 2014, but volumes in the West End were seven per cent down as a result of a few huge investments in the area last year and some lack of stock. Nevertheless, the start of this year did see three West End transactions involving figures of more than £100 million – compared to zero in the same period last year.
Any uncertainty felt before the election is now being pushed aside, leading many commercial property agents in London and beyond to think that the UK’s economic recovery will continue apace, spelling good news for the commercial investment and leasing markets.
If this post-election period is making you feel that the time is right to make your next commercial property move, get in contact with commercial property agents in London at Davis Brown today.