Investing in commercial property in London has become a real art and it is becoming more difficult to predict where values will be in the future.
If you own commercial property in central London, then you don’t need to worry, for at least another 1-2 years, as values are still rising as a result of the weight of overseas money chasing the short supply of stock. However commercial property outside of central London is a different matter.
If you own commercial property in a good, affluent London suburb, such as Hampstead, Putney and Camden, then again, you will be pretty safe in the foreseeable future. However less salubrious suburbs, such as Wandsworth, Finchley and Tooting, will present more of a risk. In these latter places, as there is less disposable income, property is less desirable to occupiers and investors. There is less general investment in these places and as a result of all of these factors, the future for commercial property is less certain.
People today who are still investing in commercial property in London are mainly interested in mitigating their loss. Therefore location is of paramount importance along with the quality of the tenant/s who occupy the property.