Recent studies have indicated that the commercial property market is on the rise. A compiled report highlighted the amount of money invested into commercial property in 2013 was £44.7billion and this was in the second half of the year alone. Experts are now predicting that the year 2014 is set for an increase on the return on investment for commercial properties.
The main cause in this surge for commercial buildings is the economic recovery, which effectively commenced around the end of the 2013 summer. Prior to recovery, some building firms had halted all their work as the economic downturn took its toll on the availability of contractual work. However, as the economy rose to recovery, the public’s increased disposable income and spending confidence reduced the barriers to entry in many of the UK’s market.
With more businesses being formed there is high demand for offices from indigenous business people and this surge has resulted in commercial property prices considerably increasing over the course of 2014. Looking back at the statistics, surprising facts were highlighted. Regional cities like the north of England constituted for half of the £44.7billion that was invested in commercial property. This was largely unexpected it is solely London that generates such astonishing statistics.
Despite the impressive statistics coming from other places in the UK, London’s 2013 investment figures of £19.9billion indicated an increase of 47% from 2012. Foreign investors are expected to swarm the UK to make the most of the commercial property investment opportunity while it is still worth the while. Property investment experts have forecasted double-digit returns for any individual venturing into commercial buildings.
Overall, it is correct to conclude that the commercial property market will certainly be busy in 2014. As property experts, we at Prideview Properties agree with this statement. Our suggestion to those looking to invest into commercial property this year is to seek the assistance of experienced professionals like ourselves. We are commercial property consultants in London offering expert guidance on commercial property investment and other services related. Our fully qualified and knowledgeable team of employees will be able to provide you with the best advice on investment and the market itself as a whole.