With the worst of the Brexit uncertainty over, investors are jumping into the UK property market. Many prominent international and domestic investment groups and private equity firms are planning on pouring billions of pounds into the commercial property market. Many foreign groups are also looking into investing again, with London, particularly Central London, being a major point of interest.
Madison International Realty is set to invest over 1 billion pounds just in central London throughout 2020. They are reportedly already pursuing several possible transactions. LaSalle Investment Management is also planning on investing 1 billion pounds in UK properties this year. This adds to the 12.3 billion pounds the group already owns throughout the country.
With Brexit induced anxiety seemingly settled and the Conservative victory during the recent election, foreign firms are also jumping into the market again. European firms are in the apparent majority, but US firms are also moving in to buy in what they see as a stabilizing market. However, with the trade deal not yet negotiated they might find themselves being a bit too hasty.
The trade deal with the European Union has a deadline set for the end of the year. The global economy is also uncertain, making it a higher risk to invest now than it was before the Brexit vote in 2016.
Lending agencies are also giving out more money than ever, both to large firms and smaller private equity groups trying to get into the commercial property market in the UK.
What does this all mean for the average person?
Not much honestly, though if you’re a business owner looking for spaces to lease for a new business or location this could be a headache if you don’t like dealing with large firms. Those looking to own their locations will face more competition from big money buyers. Business owners who own their locations might also see more investment groups approaching to see if they’ll sell, particularly in in-demand areas like London. For older family businesses, they can expect more interest in their long-held locations.
Small shops will likely be dealing with changing owners as the market picks up. This can lead to headaches as they might face changing leases. Central London will be the worst area to deal with as commercial properties are snapped up by investment firms. If the market holds steady and negotiations with the European Union go well this situation might continue for the next few years.
Lenders and the Property Management Industry
For lenders, they’ll be seeing more business as investors jump into the market. Large loans will be more common, and lending agents will find themselves busy.
The property management industry will be seeing a boom as new firms jump in and need local teams to take care of their interests. Property management software will see a boom as more offices open up or see more clients. This means that jobs will open up as well. New groups will be buying up offices, supplies, and property management software as well as seeking out qualified individuals to run it all.