The UK’s commercial property market has become an attractive proposition for developers and investors.
It is believed by a number of experts, that the UK commercial property market may be seen as a safe haven for investors. Investors that would have previously looked to spend abroad, in property markets such as the Portuguese holiday home market, have been perturbed due to the unstable economic situation.
It was reported last week that property prices across Portugal continue to fall, with property wire stating, the property market in the country is ‘distressed’. However, it has been noticed by some observers, that as soon as the fall in Portuguese property prices is arrested, a major opportunity for investors will be presented. Investors are waiting for the market to reach its lowest ebb.
With the UK property market seemingly experiencing the first stages of recovery, the opportunities for investment are being looked upon favourably.
It emerged last week that during the first quarter of 2011 London has seen a 34% increase in commercial property investment, in comparison to the same period in 2010.
Savills director of commercial research, Mat Oakley, has said this week; ‘Investors have suddenly become much more risk averse again, which favours the UK market. We are seeing a lot more interest in prime UK assets from international investors in particular, as well as domestic.’
Across London during the first three months of this year, transactions totaled a whopping £2.19billion, compared with £1.63billion during the same period of 2010. Both these sums are an increase on 2009, signaling that the commercial property market is fighting its way from its metaphorical knees and staggering to its feet.
Despite this positive news, investors should remain respectfully cautious. The transactions completed during the first months of this year, are still way down on those witnessed during the boom years of 2005, 2006, 2007.
We still have a way to go, but UK commercial property is beginning to grow again and is looking much more stable in comparison to many other developed areas of Europe.
