London. That magical city which sits so proudly at the epicentre of the nation. For Britons, it is a place that shows the best of what they have to offer the world for economy and culture. While people overseas look at it as a fascinating city steeped in history and filled with tantalising opportunity. With a record breaking population of 8.7 million, it’s truly a place that people have a strong affection for.
However, last year, an annual survey of European investors’ intentions revealed that London only came tenth in Europe, due to the unpredictable nature of the property market. Also, a graph from Savills showed that the highest rent for office space in Central London is £55.34 per square foot. This has started to make an impact, as new research from Lambert Smith Hampton found that over the next decade London office occupiers will start heading out to regions.
Another major factor is the EU referendum which is set to take place on 23 June and has caused many investors to hold back on commitments until the decision has been made. So is the investor spark slowly fizzling into obscurity?
What it has to Offer
Despite the pricing and trepidation, there’s still something that keeps investors coming back for more. Here’s three reasons why we just can’t get enough of London.
1. Economic Scale
London is vast in both its scale and economy. It has one of the largest city economies in the world and, in 2015, it was found to be responsible for 22% of the UK’s total GDP. It’s known as the world’s leading financial centre for international business and commerce. It is also home to five major business districts: The City, Canary Wharf, Westminster, Camden & Islington and Lambeth & Southwark. There are over 480 overseas banks, which is more than any other city in the world. While it exports approximately £92 billion worth of products every year.
2. A Wealth of Industries
There is no denying that London is engulfed with a wealth of culture and industries that span some of the most prominent periods in history. You are never short of a business opportunity. Each of the five business districts – The City, Westminster, Camden & Islington, Canary Wharf, Lambeth & Southwark – each span an array of unique sectors. Finance, Insurance, real estate, creative, design, media, legal and banking, are just a few of the industries the city has to offer to potential investors and businesses looking to get started.
3. Commercial Space Demand
London is still seen as the business hub of the world. It contains the most office space, with an impressive 8 million metres squared worth. Offices are always in high demand, with CBRE reporting that in the first quarter of 2016 alone, 3.1 million sq ft of offices were taken up by companies.
London will always be there as the main hub for businesses and create new opportunities every year. No matter the circumstances surrounding demand outdoing supply, it still continues to entice investors into its bustling environment. In particular, overseas investors are always looking for ways to expand their horizons, as the city offers a great playground of opportunity.
Movehut’s database found that the most popular commercial listings available to rent in London are offices, shops and leisure.
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