The appeal of London to foreign investors has increased substantially in recent years. With a number of high profile professionals and organisations especially within the financial and banking sector making London the base of their choice. The benefits and advantages of locating offices in London are worth the cost for a range of companies.
Ideal market conditions
Office space in London is widely regarded as very desirable, with many areas of the city noted as prestigious trading addresses. As more big name companies move to London, whether they choose to locate to the City of London, the West End or Docklands, so too does the interest from overseas investors seeking to capitalise on the increasing demand and popularity of office space in London.
According to figures released from an investment research firm, £2.78 billion changed hands in the three months from April to June 2010 in the West End, City and Docklands areas of London. This is now the fourth quarter of consecutive increases in property transactions in the capital’s office space sector. So far £4.45 billion has been spent on commercial property deals such as relocations, expansions and new premises this year.
There is a range of reasons for this increase in the amount spent on London office space, most notably an increase in rent prices for many different types of office accommodation. Other factors that account for the increase are the fall in the value of the pound and an uncertain economic outlook for the UK and globally. All of these factors make London office space look more attractive to overseas customers.
Essentially the market conditions for office space in London are ideal for anyone outside of the UK wanting to make a good investment. Purchasing London office space at the moment looks like it could provide good returns over time. The high profile and established locations around London are widely regarded as safe and reliable opportunities for investment. With many investors looking for stability for their equity at a time when the economic environment is volatile and unpredictable, London office space looks set to increase in value.
Stability in uncertain times
Added to this is the fact that there are few places now where money can go that can provide meaningful returns. Many other types of assets remain extremely low in terms of worth and return. With a general shortage of quality office accommodation across the UK, this has helped to increase rent prices, and at the same time many agree that across the commercial sector demand could increase, especially in retail.
With office rents up by 12 in the City of London for the second consecutive quarter of 2010 combined with a weak pound, overseas investors are increasingly looking at UK and London office space as a great opportunity for investment. There is little doubt that the influx of overseas professionals and investors to London from around the world has seen an increase in the interest of London and its office space, rising rental values could continue.
Author Resource:-
Shivani Gurtu-Louth - Operations Manager of Devono Property Limited. Devono are the only commercial estate agents in London to represent tenants looking for http://www.devono.com/office-space-in-london office space in London and commercial property to rent / lease, enquire for offices now. For interviews, quotes, images or comments contact: Shivani Gurtu-Louth Devono Operations Manager Tel(DDI): +44 (0)20 7096 9911 E-mail: sg@devono.com
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