Investors spent a record 70.7 billion pounds ($108 billion) on U.K. commercial real estate last year looking for alternatives to the low returns of fixed-income assets.
The total for 2014 was 32 percent higher than a year earlier compared with the previous record of 67 billion pounds in 2006, according to data provider CoStar Group Inc. There were 140 deals valued at 100 million pounds or more.
Buyers from around the world are competing for offices and other U.K. commercial properties as the economy improves and a shortage of space in London pushes up rents. Foreign investment climbed 25 percent to 25.4 billion pounds during the year. In the capital, the proportion of transactions by overseas purchasers rose to 61 percent.
“The U.K.’s economic strength was a major factor but the continuation – and indeed strengthening – of the flight of capital chasing higher-yielding investments played a major part in deals being done,” Managing Director Giles Newman said in February statement.
Provided figures show economic rise in the U.K. as well as growing market in spite of the crisis. The boom in commercial real estate segment, especially in foreign investments, indicates а rising demand for offices, warehouses and other commercial premises what is the result of increasing business activity in the U.K. Thus highest world prices for real estate don’t stop investors from buying properties in London. All these facts prove favorable economic situation to set up business in the U.K. nowadays.
MikyNiky Consulting will deal with all administrative and legal issues related with setting up and running your business in the U.K. (including the search of best office and other commercial real estate solution as there has been lack of offers in London) allowing you to concentrate on the core activity.
Anna Maximova, PhD in economics (adopted from Bloomberg business news)