Shawbrook has experienced significant growth in its lending for commercial property purchases, with a staggering 102% increase from 2023 to 2024.
- The South East has become a major hub for this lending rise, contributing to 30% of the total commercial property loans.
- There is a notable shift in investor preferences, as semi-commercial applications have surged by more than double, growing from 13% to 24%.
- To accommodate this growing demand, Shawbrook has improved its commercial investment offerings and increased maximum loan-to-values.
- Director Daryl Norkett expresses renewed optimism in the commercial property market’s recovery, encouraging investors to diversify portfolios.
Shawbrook Bank has reported a remarkable 102% year-on-year increase in lending for commercial property purchases, indicating robust market activity from 2023 to 2024. The bank attributes much of this growth to the South East, a region accounting for 30% of the lending, driven by strong transport links, solid economic expansion, and high demand for commercial premises.
Investors have increasingly turned their attention towards semi-commercial properties, as evidenced by applications rising from 13% in 2023 to 24% in 2024. This shift reflects a strategic move towards high-yield asset classes that offer potentially higher returns, appealing to those aiming to diversify their investment portfolios.
In response to these market dynamics, Shawbrook has expanded its range of commercial investment products. It has also increased the maximum loan-to-values for assets in several sectors, including retail, healthcare, education, and industry, to better cater to investor needs.
Daryl Norkett, the Director of Real Estate Proposition at Shawbrook, remarked that the commercial property market is showing positive signs following a turbulent period. He highlighted the attractiveness of commercial, semi-commercial, and HMO properties, given their potential for high income and the benefits of diversification.
Norkett advised investors to conduct comprehensive research due to varying risk profiles across different regions and asset types. He recommended consulting with specialist commercial brokers for tailored advice, which can be instrumental in navigating the complexities of commercial property investments.
Shawbrook’s lending surge underscores a positive shift in the commercial property landscape, attracting diverse investor interests.
