Regions help boost UK commercial property market | 07 August 2013
Regional commercial property investments around the UK have reached a two-year high, bdaily.co.uk reports.
Over recent years, the UK’s regional commercial property market has paled in comparison to that of London, with the capital attracting significantly more deals than many other towns and cities combined.
This disparity may soon be coming to an end, however, as the UK’s regions have been boosted by some high profile deals of late that offered the best quarterly results in almost two years.
New research by Lambert Smith Hampton (LSH) found that deals outside of London worth a combined £334 million were signed during Q2 2013. On a quarter-by-quarter basis, this represents a 267 per cent increase.
Much of this, it was claimed, came from high-profile deals as large investors begin showing their trust in the regions with big money investments. These included deals in Leeds, York, Doncaster and Bradford, which all welcomed contracts of over £37 million.
Despite the strong regional figures, London also welcomed an upturn in investment, which helped the UK record a two per cent rise during Q2 to a nationwide total of £8.24 billion.
Commenting, LSH chief executive Ezra Nahome told thebusinessdesk.com: “Central London offices still remain the most popular asset class – accounting for over 50 per cent of the quarterly investment total.
“But regional investment volumes are on the up, reaching their highest point since Q3 2011. his activity can be attributed to the slight easing in the debt markets, an improvement in sentiment towards the regions, momentum behind the economy starting to grow and investors taking advantages of historical highs in the yield gap between London and the regions.”
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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