Insurance News Archive
Manchester an alternative to London for commercial property?
London's commercial property market is dominant in the UK, but one property solicitor believes Manchester has claimed second place.
Alan Burns, of leading north-west firm JMW Solicitors, said that the market in the city was "extremely busy" and, although it cannot compare with London, "there are always new developments coming along so I'm sure there will be growth".
Reasons for the success of Manchester in the market range from cheaper premises leading to lower costs overall, while the city also has a good communications network, according to Mr Burns.
This is set to be further improved if recently-announced plans for creating Europe's biggest single wireless broadband across the city go ahead.
But Mr Burns doesn't see London's position coming under threat from Manchester any time soon, saying: "I don't think it will ever reach the heights of London. In any country there's always a huge difference between the capital and the provinces."
Similar praise for London came from property investment company Brixton plc who highlighted the success of the capital's industrial commercial property market thanks to high demand.
Describing London as "arguably the most buoyant financial city" in the world, Brixton plc spokesman Duncan Lamb said that industrial space was at a premium in London, while supply outstrips demand in the rest of the UK.
"Outside of London the availability of new space went up by about 25 per cent," he said.
"We don't see any market growth outside London in industrial property. You're looking at a restaurant that everybody wants to get into but nobody can, versus a restaurant that nobody wants to get into."
With space at a premium this could herald a change in the market, according to Mr Lamb, as profits begin to come from higher rents rather than through meeting strong market demand, which may lead to falling yields as investors are pressured to upgrade their properties.
18 May 2007
