Commercial Property prices in London are marching ahead of commercial property in the UKs regions.
It has been common knowledge for some time that commercial property in the capital has weathered the recession well, maintaining some of the highest commercial property prices on the planet. Commercial Property Finance, recently declared on their website: ‘London’s commercial property market remains considerably stronger than elsewhere in the UK.’
Multinational real estate and property firm, Knight Frank, recently issued its ‘Prime Central London Index for May 2011’, which stated that commercial property values in London continued to rise during May. The report said that the overall increase in the value of property in the capital during the month totaled ‘1.4 per cent’. Apparently, this figure contributed to an annual growth rate of ‘8.3 per cent’ and property prices are said to now be ‘33 per cent’ higher than they were back in March 2009.
Andrew Smith, global head of property at Aberdeen Asset Management, told the Financial Times: ‘There is a marked difference in forecasts of property performance over the next 6 to 12 months between London and the south-east, where supply and demand dynamics are reasonably healthy, and the rest of the UK, where the picture is more subdued.’
But, we should not abandon hope of a recovery in the regions, especially in the North, where it is hoped industrial, commercial property, can be the spark that leads a commercial property revival. Richard Tuffy, a partner at Goldman Sachs said at a conference recently: ‘The North of England in general has to be the engine of recovery. For too long, the North has been seen as the handicap, the thing that’s dragging the rest of the UK economy down and as a passionate advocate of the North.’
The commercial property market in London will always be superior to the rest of the UK regions, but for the good of the country’s commercial property market, the gap must not become too wide.
Previous Post
Many Serviced Offices Affected By Skype Crash
