Proposed developments such as Paramount Park in Swanscombe show Kent is a key business location

by business editor Trevor Sturgess

The county is becoming a favoured business location in the south east, according to a review.

The 21st annual Kent Property Market Report, published today says retail warehousing and the industrial sector are performing well, with the former showing rental growth of 1.2%, bucking a regional downward trend.

However, demand for office space is low - with rents falling by 5.3% since 2011.

Retail has been hit by weak consumer confidence and the switch to online shopping, although the rate of rental falls has slowed to 1.8% compared to a 6.5% drop in 2010.

House prices have edged up by just 0.2% in the past year, according to Land Registry figures, driven in part by demand for large family homes in west Kent.

The review - produced by Kent County Council, property consultants Cluttons and inward investment promotion agency Locate in Kent - was unveiled at a business breakfast in Kings Hill, West Malling, attended by more than 100 property experts.

It says the property industry sees grounds for optimism. These are based on large schemes such as the proposed £2billion Paramount Park resort on the Swanscombe peninsula, and Discovery Park, the former Pfizer site at Sandwich – recently sold by the drugs giant to a development company – and granted Enterprise Zone status.

Under the Expansion East Kent Scheme, ambitious growth companies can apply for interest-free loans if they set up or expand in Canterbury, Thanet, Dover or Shepway.

Maidstone has seen renewed interest by investors, with the opening of the Kent History and Library Centre, and Gallagher Stadium, the new home of Maidstone United Football Club, and construction of the £80m Kent Institute of Medicine and Surgery (KIMS).

Investment is also earmarked for Dreamland, in Margate, central Dover and Folkestone.

Mark Dance, KCC cabinet member for regeneration and economic development and pictured above, said: "Travelling across the county it is clear that, despite the economic climate, there is evidence of renewed confidence in Kent among its existing businesses and recent arrivals, especially those in life sciences, renewable technologies and high-tech engineering."

Paul Wookey, Locate in Kent chief executive, said: "London continues to attract strong interest from property investors, especially from overseas.

"Given our proximity to the capital and transport links, Kent is ideally placed to benefit from investors looking for locations with potential for growth."

Sue Foxley, head of research at Cluttons, added: "There is no doubt that the economic outlook in the UK is challenging and this is reflected in our report.

"However, there are emerging areas of growth in the south east economy and these are reflected in Kent's high growth business sectors. These present an attractive investment story for the county's property market looking forward."