City of London tops the list for commercial property values

City of London tops the list for commercial property values

By Emanuela Barbiroglio for Property Week, January 2018

The commercial property data-driven solutions provider created a set of measurements from available datasets, including the Land Registry and the Valuation Office Agency, to produce value estimates for 1.5m UK properties. Based on this, HARNESS set the total estimated value of the UK’s total property stock at £1.7trn.
“We have produced real estate value coefficients based on a set of input data such as geography, property type and size, which are used to estimate property values,” says Lee Mollins, chief data officer at HARNESS.

“Topping the list with an average price of £2.3m, the City of London has weathered multinationals’ threats of moving to rival financial districts without the agreement of a suitable transitional Brexit period.”

The research also looked at values by property type. The most expensive sector was offices, with an average value of £4,100psm, followed by retail at £2,300psm, with leisure at £1,400psm, and industrial at £1,100psm. Harrods was valued as the most expensive single commercial property at £1.3bn.

“Despite Michel Barnier ruling out a ‘City Brexit deal’, the area has remained robust as the highest value London district for commercial property,” adds Mollins.
“The contrast between prime and outer London areas is as stark as ever, with offices in the City of London costing 437% more psm than in Bexley, the cheapest GLA for office space. Considerable differences were also notable in ostensibly similar areas such as Kensington & Chelsea and Hammersmith and Fulham, where a retail property in the former costs 113% more psm than the latter.”