UK Commercial Property Market Under Threat From International Locations

London has always enjoyed a healthy commercial property market, even in the midst of the economic recession. It has always had a reputation as an international business hub and commercial property in the most prestigious areas of the city have always commanded high rental rates from various global companies wishing to establish a UK or European base.

However, there has been an increasingly worrying trend emerging for investors to look to overseas locations instead of London as several factors combine to deter investment in commercial property in London. The most pressing concerns for investors seem to be a lengthy process for obtaining planning permission for building and renovations; congestion and an ailing transport network and a lack of a solid investment infrastructure. Many business leaders are calling for an urgent look at taxes, fuel duty and business rates in a bid to not only attract new investors to the city, but also to hold on to existing investors, many of whom are beginning to look at relocating elsewhere.

However, despite these fears, commercial property investment in London has seen a small increase, although a number of investment experts are warning that prices are about to plummet leaving those investors out of pocket.

However, London may well have an ace up its sleeve as the city prepares to host the Olympics in 2012. The Olympics games should create a domino effect on various industries as Olympic locations usually increase in value during and immediately after the games. London will also enjoy a huge tourism boost which in turn will create a demand for commercial property UK as businesses take full advantage of the increased number of visitors to the city. However, the city cannot rest all of its hopes on the Olympic games and must act now to stop investors leaving the city for greener pastures.