How will the prices for offices in London change in 2017?
How will the prices for offices in London change in 2017?
buildingbutler.com
09.03.2017 | 17:59
Prognosis
Expert opinions
Office property in central London in this year may lose in value 15-20%, predicts Simon Wallace, head of Deutsche Asset Management Europe. The cost of office space has already shown a rebound to the downside, but this trend may continue for quite understandable reasons - the official output of the UK from the EU structure (Brexit) and the economic slowdown.
As "Domaza" reports with a reference to The Guardian, the current prices for office real estate in central London now are by 5-10% lower than that observed at the end of the 2015 and the beginning of 2016 year. In general, the 2016 for this sector of the British real estate was a year of a sharp decline in investment: the company of Savills, based on statistics, reports 17% reduction of companies' investments in office real estate. In total, over the past year, London offices attracted nearly $ 19.5 billion, but experts note the increase of vacant offices in the second half of the 2016.
The rating of the most expensive cities in the world for the cost of placing the labor force also highlighted the outflow of capital from the British offices and enables judging for a possible decrease in prices for office space. Thus, already in 2015, London was the leader of this rating, but by the end of 2016 the cost of accommodation of employees decreased by 21.2%, which lowered the British capital to the third place of the ranking.
Office property in central London in this year may lose in value 15-20%, predicts Simon Wallace, head of Deutsche Asset Management Europe. The cost of office space has already shown a rebound to the downside, but this trend may continue for quite understandable reasons - the official output of the UK from the EU structure (Brexit) and the economic slowdown.
As "Domaza" reports with a reference to The Guardian, the current prices for office real estate in central London now are by 5-10% lower than that observed at the end of the 2015 and the beginning of 2016 year. In general, the 2016 for this sector of the British real estate was a year of a sharp decline in investment: the company of Savills, based on statistics, reports 17% reduction of companies' investments in office real estate. In total, over the past year, London offices attracted nearly $ 19.5 billion, but experts note the increase of vacant offices in the second half of the 2016.
The rating of the most expensive cities in the world for the cost of placing the labor force also highlighted the outflow of capital from the British offices and enables judging for a possible decrease in prices for office space. Thus, already in 2015, London was the leader of this rating, but by the end of 2016 the cost of accommodation of employees decreased by 21.2%, which lowered the British capital to the third place of the ranking.
It is assumed that the companies may continue to proceed with placement of workers outside the UK. It is predicted that within two years from the date of the official start of the Brexit, about 100 thousand employees will start working outside the UK.
Download Free DOMAZA app
