Commenting on the Interim Results for Fletcher King, Chairman David Fletcher said:
“We are very pleased with the results. Our prospects going forward look satisfactory although performance will be more in line with previous periods than the exceptional performance of this first half year”.
The Commercial Property Market
Over the last twelve months total returns from the commercial property market have exceeded 15% and the market has enjoyed its 10th consecutive quarter of increased values.
Whilst Central London continues to be in very strong demand, focus is shifting to major centres in the regions and the M3/M4 corridor. However it is worth noting that the London office market is ten times larger than its nearest rival and twice as large as the combined total of the UK’s big six regional cities.
Although headlines tend to focus on the amount of overseas money coming into the UK, it should be remembered that since the start of the recovery in 2009 UK institutions have been net purchasers in 21 out of 24 quarters.
Whilst the recent rate of rent and capital growth is unlikely to continue we believe the market will remain strong over the next 2-3 years.