When many people are asked what they plan for the future, a very common answer is the intention to make some form of investment. We see investing in things like property or stocks and shares as a sure-fire way of securing a financially stable future, and this pattern is certainly backed up by recent news. When it comes to investment options, property is often seen as the ‘golden goose’, and more and more people are therefore choosing to invest money in property than ever before. Obviously, the rather generic term ‘property’ covers a wealth of options, and commercial property is just one possibility, although it seems to be a particularly popular choice to make.
Closing on the 2007 Peak
In terms of investment property in London, 2007 is probably still the year that is seen as the high point. This investment peak reached a staggering £20.6 million, but the fact is that the current situation is closing upon that total at a very swift rate. In central London, property investment totalled £20.5 billion in 2014, and this pattern is set to continue into the foreseeable future. 2015 is certainly expected to follow suit, and in all probability the level of demand for property in areas such as the capital will far exceed the available premises. According to Property Wire, established habits like the activity of overseas investors should remain consistent, but there’s no getting away from the fact that the forthcoming year should still bring about plenty of changes.
Global Property Investment
However, all of this investment is not just taking place in Britain, as property investment is waxing all over the globe. In fact, fears are now beginning to develop concerning a proposed ‘property bubble’, as investments really are breaking records. Such is the demand for property in optimal locations that ‘almost all markets’ are now being derided as ‘overpriced’. The Financial Times reports that a growing level of concern is becoming more and more apparent, simply as a result of the risks that might ensue should this pathway continue to play out. One particular risk is that investors are tempted to resort to less stable markets in a bid to locate more affordable assets, and sometimes such decisions can prove to be disastrous; especially when you look at the long-term developments.
The Cycle of Investment
When you read about such forecasts, it can be rather gloomy, to say the least. Statements like ‘the more we go up the risk curve, the more we go through the cycle and therefore every day you are one day closer to the next market downturn’ are pretty likely to evoke a sense of futility, but that’s not the correct response. Risks are naturally present within every form of investment, and the trick is to recognise them and minimise them at every turn. Property is a very forgiving asset, and has been for quite some time, so as long as you choose your investment property carefully, you can usually be assured of a great return. Of course, it helps to have an in-depth knowledge of the entire property climate, and that’s why we advise that you come and speak to the experts at Prideview.
If you’d like to speak to a member of our professional team, or want to investigate the current options for property investment in London and the surrounding areas, then we’d love to hear from you. We can provide you with both sound advice and some of the most attractive commercial property assets that you’ll find anywhere, so when you make your foray into the world of property investment, you can be sure that you’re doing so sensibly. To learn more, get in touch with us today by calling 0208 863 8680 or send an email to [email protected].
