Commercial property prices increased across all sectors in 2016

Commercial property prices increased across all sectors in 2016
2016 was a complex series of twists and turns on the economic front and saw operators having to adapt to a raft of new legislation

The latest report by specialist business property adviser, Christie & Co has highlighted that during 2016, average business property prices once again increased across all sectors.

In the report, Christie & Co indentified one of 2016’s main trends to be an increase in interest in UK markets from overseas buyers – particularly those from China and wider parts of Asia – notably in the care, hotels, childcare and pubs sectors. This is partially due to the outcome of the referendum, which led exchange rates to improve for foreign purchasers.

However, 90% of UK business property sales are still to buyers within the same geographic area, this has meant that Brexit has had little impact on domestic transactions thus far. However it remains to be seen what the longer term effect will be on the wider market ahead of the triggering of Article 50.

Despite this, average prices across all the sectors in which Christie & Co specialises increased further in 2016. These are as follows:

Pharmacy: + 12.0%
Dental: + 14.9%
Care: + 5.0%
Childcare: + 9.7%
Retail: + 8.8%
Pubs: + 4.4%
Restaurants: +14.1%
Hotels: + 6.0%


Chris Day, Global Managing Director at Christie & Co comments, “Whilst 2016 was a tumultuous year in our markets we have seen resilience in the face of political and economic uncertainty. However, our overall weighted price movement across all our sectors was +8.0% in 2016, led by leasehold and ‘goodwill’ sectors such as dental, pharmacy and restaurants. As we move into 2017, although there is still some uncertainty, all our lead indicators suggest that the market is remarkably robust and we anticipate another year of solid price growth.”

David Rugg, Chairman at Christie & Co comments, “2016 was a complex series of twists and turns on the economic front and saw operators having to adapt to a raft of new legislation, all of which have taken their toll on businesses across the UK. However, we are pleased to say that the sectors in which Christie & Co deal have longevity, and will remain a focus for operators and investors for the foreseeable future. We will continue to assist with all elements in the lifecycle of business property ownership and operation including funding and business cover through Christie & Co’s sister companies including Christie Finance and Christie Insurance and advice through our Consultancy services.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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