British property investors set to spend big outside London | 3 April 2013
Property investors are increasingly turning to cities outside of London when adding to their British portfolios, according to a new report.
The latest edition of the ‘UK Key Cities’ report by Deloitte suggests that London is no longer the haven of profitable investments that it once was.
Instead, savvy investors are taking advantages of bargains in the likes of Leeds, Liverpool, Birmingham, Newcastle and Bristol.
Speaking to freshbusinessthinking.com, Deloitte Real Estate head of research Anthony Duggan explained why investors were more likely to make profits outside of the capital.
He said: “Investors are increasingly being priced out of the London real estate market and are now seeking opportunities outside the capital. We’ve seen a large number of new entrants to the UK investment market cutting their teeth in London and we now expect to see them beginning to pursue opportunities in the regions where there is the potential for higher income yields.”
The report comes in spite of the substantial growth of London’s commercial property market last year. According to telegraph.co.uk, around £14 billion was invested in central London office space last year, up from £9 billion in 2011.
Nevertheless, the report suggested that rents are expected to increase by a lot more in Manchester this 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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