Post-Brexit, commercial property developments in London have slowed down, but in other areas of Britain, the situation is moving forwards.
Estate agent Savills, according to a Reuters article from December 2016, has predicted that around half of commercial property developments in London could be delayed because of financial uncertainty over Brexit. It also predict that returns on rents will rise only marginally by 0.4%, compared to a rise of 13.2% in 2015.
There is some optimism though. Since the fall in the pound’s value, there has been interest by Chinese investors in purchasing high-end homes in London.
Elsewhere in Britain, the state of the commercial property market is not as gloomy. In Kent, there is a high demand for commercial property and an undersupply, according to a December 2016 KentOnline.co.uk article. Kent’s Caxton Chartered Surveyors report that commercial property rents in the county are 6% higher than the pre-recession peak, with average rents of £140 a square meter.
The Belfast Telegraph also reported in December 2016 that the demand for commercial property in Belfast is at record levels. A number of new developments have been built and more are at the planning stage.
In the North of England, according to a December 2016 Manchester Evening News article, Stockport is aiming to be a business improvement district and this is expected to attract new businesses to the town, who will need to rent commercial property.
There are many areas outside London where there is a high demand for rented commercial property. With commercial mortgage interest rates low, many investors continue to look at commercial property.