In the markets for commercial property, North London is showing signs of heating up. There has been talk of a new property bubble, born out of the ashes of the last, with politicians and senior economists equally eager not to exaggerate the problem. The last boom ended with the credit crunch, that saw values in parts of the capital fall by as much as 50 percent. The low interest rates and quantitative easing brought in to fix this, as well as the weak pound, meant that investment has increased again – and the time scale for new development meant that bottlenecks further increased demand. There has been great interest from outside the UK, with Middle Eastern investors looking for deals here. Shops for sale in North London can be a goldmine in the right hands – either for your own business or to rent out. Shops to let in North London have seen steadily rising rents in recent times. And although this might seem like a problem, it perversely gives rise to new opportunities for those prepared to jump quickly.
The dynamic of ever-increasing rents has not met with unanimous approval. Although it is seen as a sign of an improving economy, the reality on the ground can be quite different. Traders who have worked for years in the same street are seeing their rents rising beyond what they can afford, as the property market speeds ahead of the retail sector of the economy. The result: the price of goods rises, and both shoppers and vendors move online looking for cheaper alternatives. Gaps are appearing once again as traders find it too expensive to stay.
Some sectors are immune from these developments. An eatery or coffee shops for sale in north london have a better chance of making things work – you can’t buy the coffee-drinking experience online. So some shops to rent in North London can resist the trend, whilst others will simply swallow the higher prices and see their margins squeezed (or the difference passed on to customers). The thing to remember is that commercial property London is not a homogeneous picture: different sectors and areas act very differently. The news might be driven by the developments in grade A office space in the Square Mile; the reality on the ground for retail is quite different. Opportunities still exist for buyers and sellers, landlords and tenants; it’s just a question of finding the right shop and timing.
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