Demand for London commercial property could be catalyst for regional markets | 27 November 2013
The impressive performance of London’s commercial property market is set to have a positive impact on Britain’s other major cities, according to an industry expert.
Jim Garland, a research analyst at Cordea Savills, believes that demand for properties in London has now got so high that investors are being forced to look at other markets in the UK.
In an interview with property-magazine.eu, he suggested that was good news for building owners in the likes of Birmingham, Leeds, Edinburgh, Bristol, Glasgow and Manchester.
“We have seen from previous cycles that regional rental recovery lags London and believe that history will repeat itself this time around. However, as occupier demand improves, the lack of new build space in the regional cities is expected to result in a stronger rental rebound for the best quality space,” he said.
According to businessimmo.com, a Cordea Savills report tipped office capital values in these cities to improve in the near future. Collectively, they are still 29 per cent below their 2007 peak.
This was reportedly due to a lack of new construction in these regions as well as the high levels of demand in London. It was suggested it could take up to three years for supply and demand to reach a new equilibrium in this sector.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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