Increase in the Cost of Renting Offices in London

Increase in the Cost of Renting Offices in London

Do you want to invest in UK property? Then, you have to hurry up. Experts promise that in 2020, British real estate prices will rise rapidly. Such a forecast primarily applies to office space, because it is offices that are projected to rise in price first.

Rental housing in the city, on the contrary, will not go up until mid-2021 due to a large number of offers on the market. But in the City, renting an “A” class object in the next two years will rise in price by approximately €60 per square meter, Property Wire warns. The main reason is the growth in demand for commercial real estate after voting for leaving the European Union. In two years, office square meters in Mayfair, Soho, Southwark, and Kings Cross will increase by approximately €120.

According to portal experts, entrepreneurs who are planning to move to a new building should understand that the window of opportunity is now narrowing down, and finding favorable rental terms will soon become a daunting task. Since the second quarter of 2018, rents and business tariffs for services have increased by 3% in Farringdon, Canary Wharf, Holborn, and Mayfair.

Profitable rental rates remained in the eastern part of the City of London: here the rent per year is about €835 per sq. m. lower than in Mayfair and St. James, where the “square” is on average €2,805. And the unpopular peripheral areas of Stratford and Canary Wharf are now offering the best value for money. The rent of a new office class “A” here will be €1013 per sq. m per year, and rented converted – €850 for the “square”.

London, according to the ratings, recognized the best city for doing business in the whole European Union, it also locked the top three in this category among all countries of the world. The stability of the political situation, the economic sphere, the development of infrastructure, and the loyalty of the legislative base are the factors that make it attractive for business initiatives.

Experts say that although London real estate does not become cheaper, however, the country’s withdrawal from the EU should put everything in its place.

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