Cardiff property market attractive to property investors

Cardiff Offices

It has been revealed in a report by Knight Frank that Cardiff is one of the top locations outside of London and the South East for property investors due to smart pricing and very strong market fundamentals.

Cardiff is home to a wide selection of financial and business services with a significant number of global organisations calling Cardiff home. These include Legal & General and ING Direct. Cardiff is also the second biggest media hub outside of London with an ever growing media employment rate.

The high number of financial services in Cardiff means it’s hardly surprising that finance and business service employment in Cardiff rose by a huge 4.4% over 2012. This was much higher than the rest of Wales and the UK as a whole.

Attracting further investment in Cardiff

The report noted that while the growing financial and business employment rate is promising, the Welsh Government believes more can and needs to be done to continue Cardiff’s growth. They have proposed plans that include improving transportation links throughout Cardiff as well as an improved rail network that will reduce the journey time between Cardiff and London.

The continued improvement in economic conditions means that demand for office property by property investors in Cardiff will increase to well above the 350,000 sq. ft. that is currently owned by property investors in the Cardiff market.

The report mentions that demand for Grade A stock (property in prime locations with rents above average for the area) with will increase dramatically over the coming years as property investors return to or discover Cardiff’s potential. Currently that stock is in short supply but 310,000 sq. ft. of Grade A stock is expected to be built by the middle of 2015. This stock won’t come cheap as headline rents are currently around £22.00 per sq. ft. in Cardiff Bay and £21.00 per sq. ft. in Cardiff City Centre. Cardiff is extremely popular with property investors because while these figures aren't cheap, they’re far less than in the likes of Manchester and Aberdeen where the sq. ft. price is around £30.00. Only Liverpool and Sheffield have a lower sq. ft. price at less than £20 per sq. ft.

As the economic conditions improve, Cardiff’s sq. ft. prices are expected to increase while the availability of Grade A stock is expected to remain limited in the city centre. Yields in the regional market are also expected to improve over the next few months and the report reveals that yields from prime offices in Cardiff have reached 6.25% with secondary offices expected to show improvements as well.

At CPS Homes we offer a wide range of Cardiff properties for sale. If you've recently started working in Cardiff and are looking to buy a property, check out the range of properties we have for sale. You can also contact us if you need any further assistance.

20 November 2013


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