Average restaurant property prices are among the fastest growing of all sectors, according to the latest report by specialist business property adviser Christie & Co.
Prices in the restaurant industry grew 14.1% last year, significantly faster than other parts of the hospitality market such as pubs (4.4%) and hotels (6%). Only the dental sector (14.9) grew faster.
In its Business Outlook 2017 report, Christie & Co identified 2016’s main trends to be an increase in interest in UK markets from overseas buyers – particularly those from China and wider parts of Asia – notably in the care, hotels, childcare and pubs sectors. This was partially due to the Brexit vote, which led exchange rates to improve for foreign purchasers.
However, 90% of UK business property sales are still to buyers within the same geographic area, which has meant that Brexit has had little impact on domestic transactions thus far. However it remains to be seen what the longer term effect will be on the wider market ahead of the triggering of Article 50.
Despite this, average prices across all the sectors in which Christie & Co specialises increased further in 2016. These are as follows:
Pharmacy: + 12.0%
Dental: + 14.9%
Care: + 5.0%
Childcare: + 9.7%
Retail: + 8.8%
Pubs: + 4.4%
Hotels: + 6.0%
Chris Day, global managing director at Christie & Co, commented: “Whilst 2016 was a tumultuous year in our markets we have seen resilience in the face of political and economic uncertainty. However, our overall weighted price movement across all our sectors was +8.0% in 2016, led by leasehold and ‘goodwill’ sectors such as dental, pharmacy and restaurants.
“As we move into 2017, although there is still some uncertainty, all our lead indicators suggest that the market is remarkably robust and we anticipate another year of solid price growth.”