Commercial property for sale in London, United Kingdom
Commercial property in London, England, UK, is an attractive choice among local and foreign investors. Such facilities offer healthy capital gains, regular monthly income and greater security than the securities market. One of the main advantages of investing in commercial property in London is that the rental period here is longer than in other European countries and the USA. The average rental period of an office is eight years, which means for the owner a relatively stable income for a long period of time. The rest of the advantages and features of buying commercial real estate units in the British capital are discussed below.
The pandemic has had a huge impact on the commercial property market in London. Leisure, retail and hotel business suffered, which affected rents and demand for premises. Since offices were closing and people were working from home, the reduction in pedestrian traffic in the city had a negative impact on surrounding businesses.
However, there were winners. The surge in online shopping and the increased load on data centers has led to an extraordinary increase in demand for warehouse space. The second largest data center in the world, built by Seguro, is located on the eastern outskirts of London. Technical, media, legal and financial services remained active in the British capital throughout the pandemic.
By the beginning of 2022, the commercial property market in London returned to pre-pandemic indicators. Now office premises, shops, restaurants and bars remain relevant and are in demand from investors and tenants. The level of rent has also returned to the previous indicators.
Commercial real estate in the UK capital enjoys the attention of foreign investors, as it remains a promising city in terms of transport links, employment opportunities, culture, recreation and beautiful open spaces.
You can get acquainted with the prices of commercial property in London below.
Prices for commercial property
Current prices in euros and dollars for high-quality commercial premises and residential houses in London are presented on the official website of «London Realestate». In the following table, you can get acquainted with the approximate cost of commercial real estate, the factors that affect it, and the level of income that it brings:
|
Type of commercial property |
Square (m2) |
Average prices (pounds) |
Average ROI (pounds) |
|
Restaurant |
548 |
24,5 million |
900,000 |
|
Supermarket |
370 |
1,9 million |
100,000 |
|
Office space |
40 |
1,1 million |
50,000 |
|
Bar |
487 |
16,5 million |
700,000 |
|
Coffee house |
365 |
6,3 million |
200,000 |
Investment in commercial property in London
Among the key reasons to buy commercial properties in London for investment, the following factors should be highlighted:
- Stable profit. Investors investing in commercial real estate units can receive a stable rental income. As a rule, entrepreneurs have been renting such properties for decades, so their owners are provided with a stable profit stream with a reduced level of risk compared to other assets, such as stocks.
- Diversification is the key to minimizing losses, so investing in commercial property is a reliable way to reduce risk. Investors who invest their money in only one type of asset may find themselves in a difficult position when the market, industry or a particular company faces a downturn. Those who spread their investments across multiple areas, such as annuities, stocks and commercial property, find themselves in a stronger position. If one market collapses, they will have other assets to rely on.
- Capital gains. In general, real estate is considered a reliable investment, since its value increases over time. This is especially true for properties in such a promising direction as London. Therefore, investors investing in local commercial real estate units will get a good return on their initial investment in addition to rental income.
- Good relations with the renter. The relationship between the landlord and the tenant of commercial property will be business and, therefore, more formal than with the tenant of the residential premises. In addition, a commercial tenant usually occupies the facility only during working hours, and this guarantees the absence of night calls for maintenance issues.
Buy a ready-made business in London
Buyers planning to invest in commercial property in London should consider investing in a ready-made business. The local market offers a wide range of options, so everyone will be able to choose a property for themselves that meets their goals and financial condition.
Our assistance in buying a commercial property in London
A wide range of residential and commercial real estate from reliable agencies, private sellers and construction companies in London is presented on the official website of «London Realestate». Due to a convenient search engine with many filters, users of the online platform can find suitable properties that meet all the necessary criteria. The «London Realestate» team includes only highly qualified specialists with many years of experience. Contact them to get help with the selection of real estate, support at all stages of the transaction and after-sales service.