How did the price of premises for cafes and restaurants in Britain go up?
The cost of objects on the commercial real estate market in the UK is regularly growing. Experts conducted a large-scale research segment for the period from 2010 to 2017 and found out how the cost of objects has changed. Special attention should be paid to cafes and restaurants in Britain, which are the most expensive.
To study the market of major cities – Bristol, Birmingham, Liverpool, Manchester and others. It was found that over 7 years, the price of premises used for cafes and restaurants rose by 8.5%. The largest growth was observed in Birmingham, where objects rose in price by 15.8%. The second place is taken by Cardiff, where the figures increased by 10.8%. Almost the same increase in value was observed in Manchester and Liverpool, where the premises for restaurants rose in price by 9%. In Bristol, the figure was fixed at 6.2%. The only city where real estate for catering has fallen in price was Leeds, the cost has decreased by 0.52%.
Interestingly, office and retail facilities became cheaper, except in Birmingham. Here, on the contrary, there was a rise in demand at the market and the cost increased by 11.2%.
According to the research authors’ conclusions, the increase in the price of cafe and restaurant premises in Great Britain indicates the stability of this segment’s popularity. Despite the emergence of a huge number of food delivery services, the Eat out culture does not lose popularity among the British. Experts predict that this segment will continue to develop.
Reducing the cost of premium housing in London
If commercial real estate in the above cities is growing, the premium housing in London shows a downward trend. For the 3rd quarter of this year the cost of such objects decreased by 0.3%. If we consider the real state of affairs at the market, the decline in price is about 42%. These figures are great news for those who plan to buy housing in the UK capital.
Analysts refer to the weakening of the pound against the dollar as the reasons for the decline in real estate prices in the premium class segment. This was influenced by Brexit and uncertainty caused by its processes.
Experts compare the similar state of the London market with the period of financial crisis. They are convinced that now is the time of complete transformation of pricing mechanisms for objects. The average cost of premium housing is 5.5 million dollars, which is 13.6% more than in 2016.
Brexit has significantly limited activity in the real estate market of the UK capital. Investors accepted the waiting position and want to see how worthy the country will leave the European Union. However, do not forget that London will always be a city in which it is profitable to invest, and this price reduction can be used in its favor.