Fascinating insights into the role of property in the UK economy
The Property Data Report by the Property Industry Alliance contains a wealth of information about the value of real estate in the UK economy. You can read a summary on their website, and obtain a copy of the full report, with some fascinating facts and figures, but this extract, comparing the contribution of the Commercial Property Sector to the economy to the combined value of telecoms and transport sectors caught my eye. No wonder that so many are still keen on it as an investment.
The commercial property industry contributes to the UK economy in many ways. It provides the finance for andundertakes the construction of new buildings. It invests in and manages the accommodation needs of retailers, businesses, distributors, manufacturers, hoteliers and many parts of the public sector. Other bodies within the industry maintain these buildings or facilitate the buying, selling and letting of such property on behalf of owners.
In total, in 2014 these activities (excluding those of owner occupiers) directly contributed about £63 billion to the economy – representing 3.9% of Gross Value Added. This is comparable to the combined size of the UK’s telecommunications and transport industries, highlighting the sector’s importance to business and to people’s everyday lives.”
