In a previous blog, we highlighted that the UK economic recovery was set to boost the commercial property market, after experts indicated that there would be an influx of commercial property investors flocking to the market; particularly in the London area. Now figures show that this prediction was accurate, with the investment in the capital reaching record-breaking statistics.
According to one of the UK’s leading daily papers, the Financial Times, the investment figures have reached £4.3bn within the first 3 months of the year, comfortably cruising over the previous record of £3.94bn from 2007. One particular transaction that was finalised late 2013-early 2014 was the purchase of the More London estate by Kuwaiti property company St Martins for £1.7bn. This enormous transaction is enough evidence to justify the intensity of the buying and selling in the UK’s commercial property industry.
It is reported that foreign investors, such as St Martins, are rushing to stake a claim in the UK property market, as they believe it is a safe haven and that their investments will be secure here. An estimated three quarters of the investments that have been made were carried out by foreign business people, predominantly from Asia and the Middle East. However, competition from the domestic investors is increasing, as the indigenous investors have stepped up to make the last two months theirs. An approximate two thirds of transactions during this period involved domestic investors.
Experts have now urged investors to hold on and stay focused on investing in London’s commercial property sector, as it is set to even get better. Although London and the South East region are predicted to continue outperforming the rest of the nation, it has been suggested that the prosperity is to continue spreading across the UK.
Indeed, the economic recovery has greatly helped the commercial property sector, and many investors are set to enjoy large return on investment this year. However, it is true that the property industry is characterised with regular changes and high risk. therefore investors should seek the professional guidance of seasoned experts like us at Prideview Properties. We are experienced professionals who will work with you closely to make sure you find the best investment property for sale.