Cardiff property market on the up
While there is no doubt that the London real estate market has led the way in the UK it would now appear that the remainder of the U.K.’s 20 cities are now picking up the slack. The London market is now starting to cool down amid constant criticism that prices have moved too far too quickly. Therefore, it was reassuring to see that November year on year property price rises were no less than 5% for the U.K.’s 20 cities. This is a situation which has not occurred since November 2004 and could turn out to be a major turning point.
Interestingly, the value of property in Cardiff increased by an average of 7.9% in the 12 month period ended November 2014. While some way below the 17.3% registered in London it is significantly greater than the lowest figure amongst the U.K.’s 20 cities. So, what does the future hold for Cardiff real estate?
Can Cardiff break into the top tier of UK cities?
A report by property experts Knight Frank has confirmed there are many factors associated with Cardiff which could and should see a significant increase in investment and property prices in the foreseeable future. There is no doubt that Cardiff is one of the main business markets of Wales but the Welsh economy has not exactly set the world alight of late. There has also been political infighting amongst the Welsh assembly although thankfully it would now appear that Cardiff is once again being recognised as a very attractive investment opportunity.
Quote from PropertyForum.com: “The UK property market is in effect two very separate markets with London and the rest of the UK often showing different levels of performance. We would be very interested to learn your opinion of the UK market at the moment and the prospects for the medium to long term.”
The report from Knight Frank’s confirms that investors in the Cardiff market now take in those from countries such as China, Kuwait and the USA. This is a major feather in the cap of the Cardiff property market and indeed it would seem that the business arena is also improving. These improved market conditions should continue for some time to come and with any luck catapult the city into the top tier of the U.K.’s cities.
Business premises
While there is no doubt that international investors are once again looking towards Cardiff real estate there is also no doubt that businesses are now looking to locate their operations in the city. We have seen the likes of British Gas and HSBC, to name but a couple, expanding their operations in the region and this has led to a significant reduction in prime business stock which is now limited in availability. This in itself is pushing prices higher as demand continues to grow with the full year office lease take up expected to break the 10 year average of 465,000 ft.².
When you bear in mind the troubled political and economic situation surrounding Cardiff in recent times, and Wales to a greater extent, this ongoing increase in the take-up of office space is certainly very encouraging. The fact is that quality businesses attract other businesses to the area which then attract investors and increase demand for property. Even though much will depend upon the strength and direction of the UK economy as a whole, it would seem that Wales is coming through what has been a very difficult patch and Cardiff is benefiting more than most.