“I believe the commercial property market will mirror the economy over the next 12 months” says Chris Baguley, the managing director of Bridging Finance.
In an article by Manchester Evening News, Baguley expressed that he felt ‘business confidence’ is at its highest since before 2008 and consequentially, the UK’s commercial property market is looking extremely promising.
Figures from Bridging Finance, a company that provides short term funding solutions and bridging finance for clients of the professional sector, indicate a 160% increase in investment loans , compared to figures from 2013.
In turn, this is increasing morale and confidence in businesses, which are then looking for ways to make the most of this increase in funds. New facilities, equipment, office expansions and even new locations all signal good things for the commercial property market.
Baguley explained that the “growth is not limited to the London and South East bubble; the regions are also experiencing a surge of development, particularly in the North West.” Cities in the North West, such as Manchester, Blackpool, Liverpool, Chester and Carlisle, could stand to benefit from this increase, as well as the capital city.
This increase in funding, and confidence in the economy, will ensure property development, especially in regard to offices and semi-commercial properties (such as shops with apartments above them).
Baguley expanded on this idea of nationwide expansion: “Strong interest from overseas investors, teamed with the lack of recent developments as a result of the recession, will result in developers looking to build more office spaces throughout the country, not just in London.”
The latest edition of Lambert Smith Hampton’s UK Investment Transactions report reveals that investment over the past year has reached £51.4bn – an astonishing level, not seen since before the start of the 2007/08 economic crisis.
Ezra Nahome, CEO of Lambert Smith Hampton, explained: "The pick-up and shift in investment activity over the last few months means we have seen a fundamental change in the market: deal volumes are up; investors, especially UK institutions, are much more active in the regions; and prices outside London are now on the rise. The growing appetite for property funds from retail investors has played an important role in the current market dynamic.”
If you are interested in finding out more about the current economic climate regarding property, and you are looking for commercial property consultants in London, please do not hesitate to contact us here at Prideview Properties, by phone at 0208 863 8680.