London Estate Agents, Stirling Ackroyd comment on the increasing interest from overseas.
(1888PressRelease) June 14, 2011 - London commercial property is currently enjoying a positive boom. Figures recently released show that central areas had seen a staggering 34% year on year increase in investment during the first quarter this year. £2.19 billion transactions took place, up by over half a billion pounds on the corresponding quarter of the year before. However the capital is still suffering from an acute shortage of suitable commercial premises.
London's commercial property continues to be buoyed by overseas investors, mirroring the picture for residential sales. The total amount of transactions for more central areas during 2010 stood at approximately £9.9 billion, up by one third from 2009 (£6.6 billion). Investors from overseas accounted for over half of all deals in the City and more than 65% of those with transactions completed in the West End. London estate agents in Clerkenwell, Hackney and Shoreditch summarised the current market characteristics.
"There has been a sense that the steady flow of overseas investors is not going to slow down any time soon. Instead, they're taking full advantage of the current conditions. The prospects for London commercial rents are very attractive. Against that, the lack of good quality premises available means that they remain in high and crucially stable demand. There's also been something of an amplified 'safe haven' effect recently. There's been the uncertainty of political unrest in other major world locations. Other places have suffered tragic natural disasters. London's long been seen as a safe investment location, and never more so than now".
It has been reported that some 80% of all investment equity throughout the country was focused on London during 2010. The city has escaped the difficult economic struggles seen most notably within the eurozone in Ireland, Portugal and Greece. London has also been boosted by heavy investment for the 2012 Olympics. As well as the highest end of the commercial property market for large prestige developments,, Overseas demand is also focused some of the relatively smaller developments. The trend is driven by sustained c ommercial tenant demand, particularly for office space. Property experts are anticipating demand will not be curtailed into the next year, partly driven by the shortage of stock. Recent rises in commercial rent are also predicted to be sustainable in the medium to longer term.
"In terms of what tenants want, location is key. They want close proximity to the city and the major retail sites. On a micro-scale, they also the office to be close to reliable transport links. We let and sell commercial property in Hackney, for example, and the installation of the new tube line has certainly raised interest. What we're seeing in our areas is a microcosm of what's happening in the city. We're not expecting either rental yields or demand to decrease at all this year. On the contrary, it's a strong market to invest in. From the point of view of businesses looking to rent, there are properties available, but it's a question of working with a good agent to get a good deal" said Stirling Ackroyd's spokesman today.
Stirling Ackroyd's commercial property in Hackney (and all its other central areas) can be viewed online at http://www.stirlingackroyd.com/commercial-property.aspx
London Estate Agents, Stirling Ackroyd comment on the increasing interest from overseas. 
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