Here’s why the North East is showing potential in the commercial property sector.
If you own business premises in the North East, now may be the time to consider commercial property sales with Open Property Group. Investors ploughed a total of £184 million into commercial property in the region over the third quarter of 2015. This suggests a great deal of potential in the market.
How was the money invested?
£68.3 million (37%) was invested in the retail sector in the UK. UK investors dominated activity, with their contributions accounting for £63.67 million of the total number. If ever evidence were needed of the buoyancy of the North East commercial property market, then this is it.
This comes despite the fact that the average deal size fell to £7.65 million from £10.77 million at the same time last year.
Whereas in the UK as a whole, property prices fell by over £178,000 to £2.29m (-7.2%) during July, it was a different story in the North East, with house prices also rising to £147,251 (2.1%) over the month. In fact, the region saw the biggest rise in property prices of any part of the UK. This lies in contrast to the South East, West Midlands and the South West, all of which saw prices fall in July.
Strike while the iron’s hot?
While the average asking price for a single piece of property in England and Wales during July was £294,542, North East prices are still significantly lower than the UK average, which many say makes it ripe for investment.
However, experts advise exercising a level of caution. Indeed, while there are certainly signs that the market is starting to return to more sustainable levels, the fact that a large stock of properties are for sale, or being prepared for sale suggests that prices could begin to fall.
Key deals in the region for the third quarter
- Pradera UK bought Hylton Riverside, an 11,241 square metre retail warehouse in Sunderland for £23.9 million.
- Henderson Gravitas IV purchased 3-7 High Row , a 3,471m square metre retail space in Darlington for £22.5 million.
- Cobalt 12, a 9,197 square metre office space at Cobalt Business Park in Newcastle sold for £16.75 million.