The coming year for commercial property market is London is expected to be quite challenging but will certainly be characterised with various opportunities. The leasing industry across commercial property central London is not expected to be quite promising apart from which the rental market is predictable to give higher returns across the region during the next year. The expected growth in construction sector, splurged due to 2012 Summer Olympics and Paralympics, and tourism industry is driving higher demands, flexibility and adaptability as the key characteristics of growth in commercial property in East London.
According to various real estate property consultants and real estate investment consultants, the period between 2012 and 2014 is intensified due to the coming event that shall provide opportunities for those who are capable of speculatively developing or refurbishing the present stock as when the occupational markets begin to show marginal returns on the present stock, the rental industry shall incur a huge splurge due to limited availability and prevailing competition. Furthermore, the real estate property consultants and real estate investment consultants predict that commercial property Central London and commercial property in East London is strong against short period volatility and is expected to outperform other global competitors that are not doing so well in the light of present global economic scenarios.
They believe that by the end of year 2015, the rental market shall incur strong growth with rental rates in key areas nearing as high as £100 at the western end, which accounts to average 20 to 25 per cent increase in comparison to the existing rental prices. Though the growth will be slightly sluggish through the year 2012 but is expected to pick up strongly in the year 2013 and the year 2014. Limited availability, increased demand and various structural events shall work as key opportunities for various development, refurbishment and redevelopment gears by the end of next one year. The growth and expansion in TMT sector lease events shall further work as key catalysts for such deals to arrive and make a huge impact on the commercial property market in the city of London.
Apart from the above mentioned factors, the UK industry is expected to receive investment from overseas capital, particularly sovereign wealth and far-east capital and various other key investors’ funds / opportunities that shall marginally pick up London real estate industry. London, UK being one of the most traded and liquid real estate markets globally also has the lowest thresholds for real estate investors, a quite transparent and fair taxation system that shall invite further foreign real estate investment.
