Investors in commercial property account for average of $ 385 billion that shows more than 50 % of the total UK property market of $683 billion. The amount of money invested directly in the UK property market has increased to a significant level over the last 10 years. It is greater than the underlying increase of overall stock of commercial property that shows a major shift in the owner occupation. It can be stipulated that investors in the commercial market has increased to a significant level especially to sector like hotels, petrol stations and car showrooms.
Institutions in the UK are the major persons that are responsible for the long term saving and pension plans and they are biggest owners of the commercial investment property. They own almost a quarter of the total commercial property market. In addition to this it can be said that overseas buyers in the UK commercial property market are increasing very frequently as they see UK market as the source of major earning in future years. So it can be stated that in future years a major boom can be seen in the UK commercial market (UK Moneyweek, 2014). On talking about the increase in price of commercial property in UK it can said that it is something buying a small property in London or buying a big castle somewhere else. The price in the UK commercial market has increase to record level in year 2014 and it is expected that it will increase further in coming years.
On analyzing the direct investment in the UK commercial property shows a return of 3.3 % in year 2012 on the other hand it shows a return of 4.2 % in year 2013 an increase of 0.9 % in a year. From this point it can be ejaculated that people are seeing that investment in the UK commercial property market will result them in high growth and provide a certain return to them. On talking about the long term point of view the performance of UK commercial property remain at 10.71 % per annum that indicates a slow but steady increase in market (The Telegraph, 2014).