Strong final quarter leads to record year for Commercial property sales | 24 January 2014
Strong investment in Britain’s commercial property in the final quarter of 2013 lead to the highest annual sales figures for six years.
Sales in the fourth quarter of 2013 increased 50 per cent on the third quarter and reached £19.5bn, the strongest quarter since the economic downturn in 2008. Annual commercial property sales for the year reached £52.7 billion falling short of 2007’s sales total of £56 billion, according to figures released by information provider CoStar Group.
Central London offices and transactions immediately outside of greater London made up a third each of 2013’s total, attracting £17.7 billion and £17.6 billion worth of investment respectively. According to costar.co.uk, the figures also revealed that the majority of investments were in retail space.
Around 50 per cent of the deals came from property investors within the UK. The other half came from overseas buyers, primarily from the Middle East and Far East which contributed £9.2 billion worth of investment.
Mark Stansfield, CoStar senior retail analyst, told ft.com that: “The combined factors of a low interest rate environment, easing eurozone instability, the UK’s economic turnaround and the wall of money coming from overseas created a tsunami effect, leading to an annual figure that few would have predicted at the start of the year.”
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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