In this last quarter, the industrial building is forcing the growth of the construction in United Kingdom along with country’s office and industrial sector – the rental fee will rise as ever fastest since 1998.
However, the United Kingdom has experienced the sixth consecutive quarterly fall in office space availability nationwide with the decline at its fastest pace since the late 1990s according to the latest Commercial construction Market Survey from the Royal Institution of Chartered Surveyors (RICS).
It is also seen that the increase of transactions of construction commercial being sold with Permitted Development Rights (PDR) appears to be compounding the lack of availability, with two thirds of respondents to the survey suggesting that if PDR exemptions are not extended then availability of commercial construction building properties will be impacted further.
In London, 20% of respondents said PDR transactions had led to more than 10% of available commercial construction properties being earmarked for conversion into residential use and a net balance of 51% of surveyors reported a rise in demand for office, industrial and retail space.
Across the whole of the UK, 32% more surveyors said availability across office, retail and industrial construction properties had fallen, while demand had risen to a net balance of 44%.
RICS says it is significant that demand for industrial property grew on the previous quarter from a net balance of 49% in the second quarter to 56% in the third quarter and surveyors in London also saw a large rise in potential overseas investors in the industrial construction sector of 73%.
The picture across the UK appears increasingly upbeat, with the firmer tone spreading beyond the capital as the economic expansion gains greater traction. This is being reflected in rental expectations, which are now in positive territory in all parts of the country in the office and industrial sectors. Retail remains something of a laggard with a flatter rental trend away from the more dynamic parts of the market.
For the next 12 months a net balance of 71% surveyors are forecasting an increase in rent levels in London across all segments of the market, compared to 36% in the North of England.
Reference : www.propertywire.com