Simon Robinsohn Backs Commercial Property
Respected Economist at RICS backs commercial property and has produced a report on the subject with a distinguished panel of experts. From our own work we know that commercial properties remain strong in the Kent and London regions that we deliver the majority of our services to. An extract of the story is below and a link to the full story as well. Worth a read for commercial property buyers and owners.
Price expectations remain strong
In the face of continued demand and lack of supply, rent expectations for the next quarter in the capital are strongly positive across all sectors with rents set to continue to rise in the medium and longer term.
Over the next twelve months, respondents are most confident of seeing rental increases in the prime industrial market in the capital. However, 81% of respondents in the capital now view commercial real estate in central London to be overpriced. Our panel discussed this and felt that it was important to note that investors in the market, especially foreign investors, are not trying to beat the London market, they are trying to beat their own market.
Yield is still higher here than in most other places, even if they are approaching the top; therefore they would expect continued investment. Areas outside London, with further room to grow, are also looking like attractive prospects for those outside the UK. However, the panel noted that due to the emerging nature of these markets, the needs of occupiers may not be fully understood since they are in areas with a longer history of Foreign Direct Investment.