Despite a drop in commercial property investments following Brexit, Britain remains a strong market for commercial property. BrickVest’s survey of global property investors said that they see Britain as a top place to invest in commercial property.
The second property market of choice for investors is Germany, followed by France.
Around 48% of global investors see their main profit coming from the capital growth of commercial properties rather than the rental income.
The Telegraph, also in April 2017, announced that for the first quarter of 2017, the London commercial property was at an all-time high with £4.9bn of property transactions recorded. A total of 13 property deals were worth more than £100m, nine of which were by foreign investors.
Though Britain attracts plenty of foreign commercial property investors, there are still many from Britain. Buy-to-let landlords have recently been affected by the reduction in tax relief on commercial mortgage interest payments. Many are looking at buying commercial and semi-commercial property in order to diversify their property portfolio. Commercial property is attractive as tenants tend to stay for longer than residential ones, rents remain high, and tenants often pay all or some of the maintenance costs.
Interest rates on commercial mortgages remain low. Commercial mortgage brokers have access to a wide range of mortgage providers and property finance products.