Property prices consistently rise over the long term in most towns and cities across the country and as such, make a good investment. Of course, over the short term, prices do fluctuate depending on the state of the economy and due to developments in the area but long-term, they tend to be safe investments.
As with most things, supply and demand is crucial. In cities like London where there is a huge shortage of houses, property prices are rising at an astronomical rate as people are desperately trying to buy commercial and residential property there, increasing the demand further. The demand is so high in London because space is at a premium so it isn’t a case of simply building more properties. Developers have begun building taller buildings to accommodate the growing demand but developers cannot keep up.
London is the most expensive city for both residential and commercial property according to a recent study by Paul Statham, CEO of Condeco, who found the UK to be one of the most expensive places to own commercial property. Companies spent $700bn on real estate in 2014 and given that the economy is improving, this figure is likely to rise above pre-recession levels of $1tn dollars in the next few years.
“With the economy starting to emerge out of recession, the cost of commercial real estate is forecast to continue to spiral and businesses will still haemorrhage money unless they have access to the facts about how efficient their office space usage actually is” said Mr Statham. He went on to say “the most worrying aspect of this is that businesses are not aware of the extent to which their office space is under-used or their meeting rooms left empty, and it is large corporates, who own vast amounts of real estate across many cities and countries that experience this pain more than anyone else”.
Businesses are constantly re-evaluating their expenses in order to reduce costs and to make their business as efficient as possible. With commercial property prices being particularly high in London, many businesses have downsized in order to save costs with many hiring meetings rooms on an ad hoc basis rather than owning their own. Depending on your meeting room needs, this can be a hugely efficient approach.
Mr Statham predicts that the cost of office space in London is set to rise saying “a major trend for fast-growth multi-national companies right now is the leveraging of USPs within their workplace, such as collaborative spaces, in order to attract and retain the world’s best talent. A flexible workspace, geared to the daily demands of evolving business will not only work towards supporting better employee engagement and satisfaction, but also seriously enhancing productivity,” he adds.
Emily Falconer from No. 4 Hamilton Place, an events venue in London offering West London meeting rooms for hire said “businesses are of course evaluating costs constantly and for many, renting a meeting room on an ad hoc basis is a better option than having their own. Having your own meeting rooms is nice but not feasible for many businesses. Generally, you only need your own meeting room if you have regular meetings and can make use of it, otherwise it is often more cost effective to hire one on an ad hoc basis”.
Company Name: No. 4 Hamilton Place
Contact Person: Emily Falconer
Address:No. 4 Hamilton Place
State: Greater London
Country: United Kingdom