The current volatile economic climate makes one wary on investments. One needs to do a thorough analysis of the market before committing where to lay your money. However, there is a proven niche in the market that remains profitable even in this uncertain times.
The UK still remains a centre for gains. Investments in commercial property in the UK saw a month on month increase of 66% in January. This statistic proves that investor confidence remains strong especially in the commercial real estate arena.
A total of 65.4bn was invested in UK commercial real estate since January 2017. An interesting statistic release by Savills confirmed an increase in UK investors which is currently at 59% of the total population of investors, the highest proportion since 2011. This indicates a growing resurgence of confidence from local investors. The remainder 41% (which is still a large proportion) are from foreign investors who also realise the profitable investment opportunity in the UK commercial real estate. The decrease in the foreign investors can largely be attributed to their concerns around a hard Brexit, which for them, leaves the outlook for the UK questionable. The investor confidence can only grow our economy and firm our position in the World Economic Forum.
Coupled with the fantastic investment, the return on investment is equally impressive. The average return on investment was earmarked to be between 4% to 5% in 2018. The current annual rolling UK returns are almost 11% which is more that 200% of the earmarked projection. So it is little wonder why the UK commercial real estate is proving to be such an attractive investment opportunity.
What is attracting investors to UK commercial real estate? A study by Oxford Economics forecasts that the GDP growth for financial and business services (FBS) worldwide to increase to 3.7%. This is the strongest rate of expansion since 2006. This boils down to an increase in the workforce of FBS by 7.9 million in 2018. It therefore creates a demand for an additional 950 million square feet of office space around the world. This indicates an ideal investment opportunity for ultra high net worth individuals (UHNWIs). The commercial real estate assets as with other real estate rarely depreciates, so a return on investment is almost guaranteed.
No matter your social standing, investing and saving is for everyone. It is nearly impossible to get an aggressive return with conservative risk. The UK commercial real estate is almost turning that impossible into a possibility. You too can be a part of this booming market.
If you wish to profit from UK Commercial Property you can Invest with Exmount Commercial Developments from as little as £10,000.