Commercial Property Predictions 2019
Although the UK is currently facing a lot of uncertainty in respect of Brexit, commercial property investments are on the rise. The housing market may be experiencing a slow period, but it seems commercial properties have avoided the same fate. So, as we head into 2019, is this rise likely to continue? Here, we’ll look at some of the top commercial property predictions in 2019.
Retail property investments likely to decline
Retail investments have already seen a decline over the past year. As shoppers continue to move away from the high street, investors are being cautious about purchasing retail space and this is likely to continue into 2019. Some hope was given to the high street as shoppers splurged late in December 2018, but the uncertainty within the industry is still prevalent.
It’s unlike the high street will die out altogether. After all, it has decades of proving it can overcome even the toughest of climates. However, in the meantime, the retail sector has slowed down, and investments are being made in other areas of commercial real estate instead.
Domestic investments take precedence
One of the most significant changes the commercial property sector has witnessed recently has been the return of domestic investors. As the uncertainty of Brexit continues to put international investments on hold, domestic investors have been keen to snap up commercial property bargains in the UK.
In 2017, research shows that domestic investments made up 59% of all acquisitions, which is the highest since 2011.
Office spaces will continue to lead the way
Throughout 2019, the majority of commercial property investments are likely to continue to be put into office buildings. Real estate advisors are witnessing a huge spike in enquiries about office commercial space; particularly more unique building investments. The retail sector may be slow, but offices are experiencing a significant boom in popularity. Unsurprisingly, it’s London and city areas which are seeing the most investments.
Existing facilities win over land
Another trend taking over this year, is investments in existing commercial properties over land. At one time, investors saw a great deal of promise in investing in land and building their own properties. However, it’s existing properties which are being snapped up recently.
This is likely down to the fact that it costs significantly less to invest in an existing building than it does to build a new one. There has also been a rise in the number of retail firms closing down large numbers of stores on the high street. This has led to many investment opportunities.
As you can see, the commercial property sector is set to continue to rise throughout 2019. Domestic investors will continue to dominate, while office spaces will likely see the most investments.
