Categorized | Commercial, International

London Commercial Property Market to Struggle in 2012

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London’s commercial real estate market is expected to face some serious challenges in 2012. Analysts believe that the commercial market, particularly the London office market, will remain stagnant over the next year. Value and sales volume increases are expected to resume again in 2013.

Despite the sullen predictions for the next year, it is believed that London will still outperform its European neighbors by a good amount. International investments are expected to dominate the majority of sales in the office market over the next few years, just as they have during the current year. The Far East is expected to increase their overall share in the London market in the upcoming years.

Despite the leveling off of sales pricing and volume, rents are expected to continue their growth for the next few years. Analysts predict that they will increase as much as twenty percent in the West End, and twenty-three percent in the central part of the city.

The current debt crisis will certainly play a role in the stagnation of prices in London’s real estate market. Even without growth, however, London is expected to be far better off than other European nations. In fact, many are expected to face serious declines in their respective commercial real estate markets, largely due in part to the pending global economic crisis.

London’s real estate market, both residential and commercial, has performed strongly over the past year. Prime properties in Central London have had the strongest gains, as international investors have competed heavily for both office, and rental unit properties in the sector.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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