Our monthly property market review is intended to provide background to recent developments in the property markets as well as to give an indication of how some key issues could impact in the future.
Overview
OVERSEAS INVESTORS RETURN TO THE MARKET
A recent ‘UK Commercial Market in Minutes’ from Savills reveals that investment volumes totalled £7.2bn in the third quarter of the year, this represents a 55% increase on the previous quarter. Despite this uptick in Q3, these volumes were around half the normal level seen in this period previously.
FLEXIBLE OFFICE BUSINESSES TAKE A HIT
The pandemic has been very challenging for flexible office space businesses whose occupancy levels have been severely impacted, as millions of people around the globe continue to work from home. The biggest company in the sector, IWG, which has 11% of the market share and over 3,000 offices globally, registered a pre-tax loss of £176m for the six months to the end of June 2020.
AMAZON ON THE LOOKOUT FOR NEW UK HUBS
As it endeavours to fulfil its two-day delivery commitment for Prime subscribers and demand continues to accelerate due to the pandemic, it has been reported that Amazon is scouring the UK for 40 new parcel hubs. Despite benefiting from the pandemic, Amazon has struggled to cope with a huge surge in demand, with Jeff Bezos, Chief Executive, describing it as “the hardest time we’ve ever faced.”
COMMERCIAL PROPERTY CURRENTLY FOR SALE IN THE UK
- Regions with the highest number of commercial properties for sale currently are the South West and North West of England
- Northern Ireland currently has the lowest number of commercial properties for sale (30 properties)
- There are currently 1,286 commercial properties for sale in London, the average asking price is £1,215,905