Until lately, commercial property in the UK has been the sphere of professional and institutional investors. Now-a-days this field is attracting the interests of the individual investors. Investing indirectly in commercial properties is not a straightforward process. It is quite essential that private bankers, pension managers, wealth managers, private bankers, understand fully both the opportunities as well as the risks. This will help them provide the best quality advice and suggestions to all of their clients.

How big is the UK commercial property market?

 

United Kingdom has around £762bn of commercial property. In contrast, the private housing market is priced at £3,400bn whereas the equity market is worth of £1,781bn. Industrial, shops and offices which are the major areas of commercial property make up around 80% of the total market which is about £609bn. about half of these properties are rented or put on lease to tenants by the landlords. The rest, for the most part, is owned by the occupiers who are primarily private companies and to a smaller extent, non profit institutions, and public sectors own the commercial properties. The percentage of commercial property is continually rising as the owners or occupiers let go of the resources that are tied up in the properties that they have. They do it by selling those buildings or properties to investors and in turn they take a leaseback. The Governments has made arrangements of leasebacks and sale for the larger packages of its property.

The major investors, who invest a lot of money in the commercial property of the United Kingdom, are for the most part, the individuals and the various organisations.

The financial institutions:

 

The biggest chunk of the investment properties, which is almost 28%, is primarily owned by pension funds and the insurance companies. These institutions own these properties as collections of real estate that are directly owned.

In the United Kingdom there are about 114 property companies. At present around 14% of the investment stock of the UK are held by these companies.

If you are thinking about relocating your business to UK, you must get in touch with the corporate relocation services.