The average price for a pharmacy rocketed by more than 13 per cent last year, property brokers Christie + Co has said.

The company attributed this increase to an "insatiable appetite" for the businesses, and Christie + Co head of pharmacy Matthew Williamson said between five and 10 buyers were now bidding for each property regardless of its size.

The area inside the M25 experienced a buying “frenzy” last year, with an average of around seven or eight offers per property, Mr Williamson said. Buyers were also prepared to relocate to more remote areas of the UK if it meant "they have a business to run themselves”, he said.

Pharmacies had proven to be a good investment “for the last few years” and Mr Williamson said he did not see “anything on the immediate horizon” which would mean buyers were likely to regret their decision.
 

Sales above asking price

Christie + Co’s head of medical Simon Hughes said demand for pharmacies had continued “unabated across the UK” and many businesses were selling for in excess of the asking price.

“The buying process is fiercely competitive and individual bidders are often able to draw on third party private funding, which means we regularly see private purchases outbid corporate or multiple operators,” Mr Hughes added.

Christie + Co told C+D it could not compare last year's price rise with previous years as it was the first time the company had collected accurate annual data for the sector.

In November, brokers told C+D that support from banks meant independent contractors were able to outbid multiples for many pharmacies.

Have you tried to buy a pharmacy in the past year? 

 

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