Since the United Kingdom left the European Union (EU), there have been lots of repercussions felt by many UK sectors. The commercial property in the UK began to rapidly change and faced uncertainty after the Brexit vote. Many deals and investments fell through, which led to many buildings being withdrawn from the market. However, reports are now showing that this industry has started to pick up speed again.
Commercial Property Performance in the UK
Commercial property has 2 key components from an economic perspective: the investment market and the occupational market. Occupier markets in the UK provide more evidence that the real economy has remained less sensitive to the vote when compared to the balance sheet economy. Also, UK investment market data is leading to the same conclusion. But in both cases, the data suggest that the initial impacts that the Brexit vote caused are already fading because of several reasons.
Following the Brexit Vote
Figures show that demand for investments from industrial and office sectors slumped in the 1st half year following the leave vote. The market declined to its lowest in 4 years. But investment purposes remain unchanged in the retail sector, even though the retail market is facing challenges.
Since the referendum, there has been an increase in foreign investment in commercial property, especially non-European investors, which has made the city prices to increase. Offices to let in some areas are in high demand as ever, with the market remaining robust.
The UK is undoubtedly an attractive commercial property market for foreign investors. Longer leases in the United Kingdom, which other nations do not offer, offer stability and entice investors. Central London is still the most attractive area to invest in, which has driven this commercial market to its 9-year high. Based on the turnover of London from investment, there was a 24 per cent increase immediately after the Brexit vote. Turnover reached 2.352 billion pounds and experienced the strongest period for investment ever seen since March 2007. This proves that the commercial property market is booming and shows the industry has managed to overcome the fears of the leave vote.
There were dips and fluctuations in the retail industry sector, but the sectors managed to persevere and remained strong in the tumultuous after the Brexit vote. The initial decline resulted in a drop in industrial and office investments throughout the United Kingdom. However, following the vote, the industry still continued to make leasing deals with high street giants.
Despite the outcome of this vote, the UK still stayed in the top place as the largest retail investment market in Europe. Today, investors are still looking for ways they can invest in this sector. The high street continues to be popular among shoppers. This has led to retailers ensuring that they have secured the right place that comes with a long-term deal. When it comes to the retail industry, location really matters. This has helped to keep the commercial property market booming, even after the Brexit vote since many retailers want to acquire physical stores.
As with all the sectors, the commercial property market in the UK suffered an initial decline immediately after the Brexit vote. However, the investments from both overseas and domestic investors continue to rise, which can lead to the commercial property market breaking yesteryear records despite the leave vote. This means that this is the right time to rent commercial property. If you are looking for commercial property, visit www.proplist.com. This website has made searching for the commercial property very easy.