A pre-deposition to this article is agreement that we base our expectations of the future on our previous experiences and statistical suggestions. This means, that our judgments are just a concept determined by events that have already taken place. On this logic, we should refer to both our experiences and statistics of 2016 to look at London’s projections for 2017.
2016 had its twists, but many surveys are revealing the property market is developing positively throughout the UK, with the commercial property market displaying a bright future.
But what does this mean?
The Q3-4 2016 RICS Survey displays the recovery after the events of 2016; value projections are firmly within a positive territory and expectations have improved across most parts of the UK, although the cautious feeling does still remain in some businesses.
Putting London under the microscope, the west end is a key figure in the forward charge of the London market. In just a year, the relatively high level of take-up demonstrates the strength of the office market – November saw investment volumes of £574m which spanned over seven transactions. Such buoyant turnover and intent, demonstrates an active market reflecting a long lasting confidence in London, and in this particular case, the West End.
Savill’s recent reports provided into the commercial world were more than comforting. London offices being a key demand is un-wavered and with availability being low, we may see more developments fast approaching. Alongside this, with a slightly weaker pound stimulating a steady rise in non-domestic interest in UK commercial property, it is unsurprising that 75% of the purchases in 2016 were non-domestic and it is predicted the next five years will also see record levels of non-domestic investment within London.
Does this mean a brighter future throughout the sub-sectors of London?
“From a trading perspective, the fact that sterling is down, has definitely had a positive impact on demand,” says Jeremy Jones, a key figure within Christie & Co, who expects leisure; in particular hotels, to be the most likely to benefit from this economic shift.
So what’s the outcome?
All markets are experiencing change and the dynamics are certainly altering, but that isn’t to say the change is negative. History has shown us that with change comes opportunity and many surveys are pointing to a different, but none the less bright future. With London leading the change in many aspects; I think this will be a year of evolution and variation in the crowded city, but certainly nothing less than exciting.