How have commercial property prices in London been affected by the recession?

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by: Glenn Tucker
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Date: Wed, 31 Aug 2011 Time: 4:36 AM
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The commercial property sector was late coming into the recession, but as a result of this, it will take longer to come out of it. During the worst recession since the depression, commercial property prices have dropped. But now, after two and a half years of decline, there is finally a price increase in commercial property prices in London.

It was real estate which kicked off the economic disaster in the first place, and so it is rather ironic that it is in this industry that investors really have the opportunity to capitalize on economic recession and make this an opportunity for profit. This is because property, both in terms of sales and renting, is one of the major assets whose value is plummeting in the face of a never ending stream of liquidations and bankruptcies, and it is property whose value is guaranteed to go up when the recession is over. The rental market comes into this, and no matter how hard the recession hits, businesses which do manage to keep afloat will be competing for prime office space, particularly in the heart of London, where the majority of business happens, and where companies want to be based.

For those businesses which can invest in their location, this is one of the best methods to surviving the recession Visitors are likely to want to come to your office if it is surrounded by convenient things like restaurants, bars, and good transport links. Because of the many shopping locations, the property values and the overall ambiance, central London remains one of the UK's top property locations.

Different areas in Canary Wharf and the West End have mostly been affected differently by the recession. Despite what some are calling a ‘double dip' in the property market, it's certainly not at a standstill, and experts predict a dramatic rise.

Canary Wharf is a flourishing area in terms of employment and real estate. In contrast to much of the UK, this London area is actually booming in terms of new commercial developments. Commercial rental prices here tend to air on the higher side, above the national average, but the advantage is that those who are located in this area have a sought after address, close to modern conveniences and tourist attractions - a benefit for both workers and visitors alike.

The West End meanwhile seems to have recovered sufficiently from the downward property spiral, with the rental market at almost an all time high. In terms of entertaining clients, the West End cannot be topped, which goes some way to explain its appeal and recovery during the recession.

With the recession affecting almost all aspects of life in the UK, it is refreshing to see a recovery in some areas, including commercial property rentals. This is allowing businesses to come through the difficult financial times, and stay in prime spots, particularly in London, which is where the majority of office space in the UK lies.

About the Author

Glenn Tucker - Online Marketing Manager of Devono Property Limited. Devono are the only commercial estate agent with offices in Mayfair that exclusively represent tenants looking for offices in central London. We can also help you find serviced offices all over central London. Our aim is to secure the best commercial property at the best price.