The value of commercial property across England and Wales almost doubled in the two-year period from 2016 to 2018.
According to new data from the property data insight and technology provider Search Acumen, in 2018, 13 local authorities throughout England and Wales exceeded £1 billion in commercial real estate sales. This compares to 2016, when only six local authority areas exceeded the £1 billion mark.
The research shows that in the two years from 2016, the total value of commercial property sale transactions increased by 46%, from £65.65 billion to £95.96 billion.
During the same period, the total volume of sales went up by 22% from 121,923 in 2016 to 148,965 in 2017.
The analysis also shows which areas of England and Wales have seen the biggest commercial property price rises.
Central London has seen the biggest annual rises in commercial property values, followed by Greater London, where, since 2016, six of the 13 local authority districts saw commercial property sales that exceeded £1 billion.
In relation to the volume of commercial real estate sales, Liverpool and Birmingham have seen the highest number of sales from 2016 to 2018.
Caroline Robinson, commercial property BDM at Search Acumen, spoke about the rising demand and value of commercial real estate in England and Wales.
“The commercial real estate sector has continued to defy expectations since the EU referendum with both valuations and volumes of transactions growing significantly since 2016. Our insights have showed that Greater London’s commercial real estate transactions alone increased by more than 40% in value between 2016 and 2018 – generating an additional £10bn in annual sales – despite the volume only rising by 17% over the same period.
“The overall market slipped back slightly in 2018, which is sure to have been influenced by some investors and developers waiting for a Brexit breakthrough. Nevertheless, our insights paint a picture of a vibrant regional market for commercial real estate business. For example, areas like Walsall and Nottingham have seen a huge increase in the volume and value of commercial properties being transacted in the last two years.”
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