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Commercial Property Development in London - Essay Example

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This paper "Commercial Property Development in London" will explore the primary drivers for commercial property development in the central London in recent years. It will also examine the extent to which BIDS has been a significant factor for good in the central London…
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Commercial Property Development in London
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Commercial Property Development in London

Download file to see previous pages... A report by Ball, Lizieri, and Macgregor (2012, p.41) indicate that the city has witnessed a faster growth of commercial properties in the recent past. In this regard, the report showed that many property developers have been targeting central London as the best place to put up a commercial property. Nevertheless, this growth in commercial property, in London, is taking place at the backdrop of the recent financial crisis that did affect the U.K. adversely. Research has shown that the recent financial crisis of 2007/2008 did affect all the economic sectors in the nation including the property market, which dropped to an all-time low as many people could not afford to invest in commercial properties due to lack of enough funds required for the project. In fact, the U.K. is still struggling to recover from the effects of the financial crisis, by introducing measures aimed at improving the state of the economy such as opening up the country for investments. O’Kelly (2012) noted that the economy of the U.K. shrunk by about 4.9% in 2009 due to the effects of the 2007/2008 financial crisis. In fact, the economy of the U.K. has not been able to experience any significant improvement since then. Only recently, in 2012, did the economy registered a growth rate of about 1%. However, economists remain positive that the economy is on the right course and is likely to enjoy significant growth over the next few years.
However, as earlier stated, central London has overcome all these odds and has been experiencing increased growth in commercial property development over the last six years. ...Download file to see next pagesRead More
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