Overseas interest boosts UK property market | 20 October 2014
The amount of commercial property in the UK which is owned by overseas investors has more than doubled in the last ten years, new data shows.
Figures released this week by Property Industry Alliance highlight a 129 per cent growth in foreign investment between 2003 and 2013, with a total of £94 billion pounds coming into the market from other countries.
The growth means that foreign buyers now own nearly one in four (24 per cent) of the UK’s commercial buildings, although only a quarter of these assets are located outside of London, businessweek.com reports.
A number of reasons have been cited for the significant increases, including the UK’s recent history of political stability and ever-improving infrastructure. The robust legal system has also played a part, the report claims, but one expert is concerned that the optimism may not last.
Liz Peace, the head of the British Property Federation, was quoted by independent.ie as saying: “With the political uncertainty caused by an upcoming general election and a possible European Union referendum, it is important that politicians of all parties avoid measures that could dent investor confidence.
“Sudden or unexpected changes to our taxation system could make the UK lose its competitive edge.”
According to the Property Industry Alliance, the total value of Britain’s commercial real estate was £683 billion at the end of 2013, with London accounting for more than a third (35 per cent) of this.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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