London seems to be following the global trend of a spike in the rate of commercial property. In a recent research conducted by Knight Frank the results stated that commercial property would see a hike not only in rent but also in the cost per square foot for investors. The report states that by the end of the 2010 the rate of office space properties in prime areas in London could go up by close to 43%.

This is not the only bad news for investors. The city will also witness lack of space for commercial purposes and this could be as high as 19%.

Currently the rent for a commercial space in Square Mile is £44 per square foot and it could increase to £55.20 per square foot. If this is the case it will result in many new businesses and commercial projects going on hold.

The rent in West End is expected to increase by 11%. Currently a commercial space is paying £65 per square foot and it may rise as high as £ 73 by the end of the year.

The report further states that the city will witness 26% decrease in the desk space schemes available.

Ronnie Nathan the current Chairman of Capital and Overseas Holding that investing in property at this time is a bad idea. The market is seeing lack of prime office spaces and this had led to a severe rise and dip in the price of properties since 2007. Even investors are not able to secure a good deal out of their current deals.

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