The Welsh Government pursues the Cardiff Bay Property Market
Exciting plans for a new Cardiff Bay development
Positive support from property experts has been given after confirmation that the Welsh Government will be investing in the property development boom in Cardiff Bay. The Welsh Government have decided to team up with developer JR Smart at its Capital Quarter development in order to expand on the recent success in Cardiff Bay. Construction is already underway for an 80,000 square foot office space, which will be ready to be occupied by next March according to the agreement with JR Smart. There will also be a 75,000 square foot office scheme after completion and a 100,000 square foot plan for office space on land already attained at Callaghan Square.
In all, up to 260,000 square foot of grade A office space will be open for occupancy or under construction by next Spring, which can only improve the upward expansion in developments seen in Cardiff Bay in recent years. In order to attract inward investment, expand local businesses and create jobs, but also to improve transport links and broadband speeds, it is essential for Cardiff to spend in grade A office stock. Cardiff Bay is clearly an expanding project, which has brought many appraisals and interest into the area. With potential development planned for coming years, it’s predicted that Cardiff will have the largest speculative activity outside of London.
Divided opinion on the role of the Welsh Government
Although the Welsh Government has been criticised for interfering in the property market, in this case it seems that they are making the correct judgement. Recent economic difficulties has seen a lack of private sector investment in all areas around the UK, and the Welsh Government believe they cannot afford to wait around for a sustained economic upturn and not invest in office stock. There are certainly risk factors associated with these plans such as the danger of empty office spaces and loss making within the first two years. However, it has been agreed that these plans are a positive step for the Welsh Government.
With recent speculation that the UK is currently on a growth trend, the Welsh Government have clearly taken a well informed and positive move to invest in the property market. By having a rental income with secure convents from tenants, they will be able to make significant profits from selling office space. From this, they can make good returns on their investments, which in turn can help develop areas such as Pontypridd and Newport, which both require development.
A bright future for Cardiff Bay
If you remember, we mentioned recently the plan to build a brand new Cardiff and Vale college campus which students will be able to use and enjoy by the autumn 2015. In addition, there will be good opportunities for successful local businesses to acquire grade A office space in the area, giving just some perspective as to the strong potential for development in the area.
Cardiff Bay is the largest waterfront development in Europe, and that’s no surprise given the number of high end property developments that have recently been built or are currently scheduled for development in the area. It makes Cardiff and its surrounding areas a very appealing place to live, with areas such as Roath and Cathays being especially attractive for students looking for accommodation. So if you are looking to rent or buy in Cardiff, get in touch and see how Capital Properties can help.