In UK excellent quality commercial property investments will be in high demand. The opportunities for investors with money to spare will do well in the second six months of 2012. Experts expect technology to be slow in the first six months of the year. Commercial rental buildings in London locations will appreciate in value. Other UK cities will see a downturn.
A major industry realtor who is an expert predicts safe investments to be desirable in the coming year. The safer assets will continue to be in high demand, if the rents are high.
Currently, commercial property values will be troubled by tenants who default on rent due to the economy. Rentals will continue to worsen in the year 2012. Banks in the UK may be withdrawing from the market. Loans are more difficult to obtain, which will make the residential real estate market grow worse.
On the political scene, legislation leading to requiring property fund managers, if enacted, will add to fees which are already unduly high. Also, the green energy standards will grow and buildings that do not meet them will be a problem.
London office rentals will continue to thrive if they are good properties. Not enough new construction will be available. The existing office space that does not meet the standards of the higher price rentals will not be successful in finding tenants regardless of how low the rents are. The low quality buildings will be offered for other uses.
According to experts in the industry, overseas investors along with those in UK will keep prime commercial property in demand. However, the values of secondary or low rent properties will decrease even more in value.