The London commercial real estate market has been one of the best cities globally to invest in the last several years, bringing great vitality and success. Given this there is no reason for this positive trend to be ending anytime soon, despite looming fears of Brexit.
Commercial Office Market
In 2018, commercial offices in Central London attracted £16.2 billion of investment, exceeding that of Manhattan, Paris and Hong Kong. There have many foreign investors that have had continued desire in London’s real estate market.
Greater China has been one the major investors with just last year their investment contributing to 21% of the total London market. Future predictions find that there is £40 billion of capital looking to invest in commercial real estate. Greater China, the biggest potential investor in London, is estimated to invest £10 billion, or 25% of the total London market in 2019. This continued influx of investment is a testament to the desirable location that London offers to global investors.
Currently all indicators in the commercial sector are healthy. In addition to significant capital investment, office vacancy rates are one of the lowest they have been in the past several decades. Since 2013, vacancy rates have dropped from 7% to 4.6% in 2018 and is projected to drop further to 4.4% in 2019. These vacancy rates are a good indicator of the future performance in the commercial sector. Thus, the continuation of low vacancies in the London market are encouraging for both current and new businesses looking to emerge and expand.
This year we will continue to see the rise in flexible working space. Victor Harris are spearheading the approach and are ensuring our clients, both tenants and landlords keep themselves ahead in this fast changing marketplace.
Here at Victor Harris, this positive economic outlook provides us the great opportunity to provide guidance and insight for those looking to find various commercial properties throughout London. Ultimately, with our services we hope to help you find the most suitable space that fits your needs for the right price.