Foreign investment in UK commercial property reaches new heights | 26 October 2012
Foreign purchases have driven substantial rises in the UK’s commercial property market, insidermedia.com reports
The latest figures from property developers DTZ found that investment from overseas businesses totalled £8.1 billion during the first half of 2012, an increase of 80 per cent on figures recorded between January and June 2011.
These figures mean that 53 per cent of UK commercial property investment in the UK now comes from foreign markets.
Much of this development has centred on London, with larger lot sizes in the capital being amongst the most in-demand. Of the total spent in H1 2012, £5.6 billion is expected to have been spent within central London.
The picture is equally rosy outside of London too, with the £2.5 billion investment representing a 31 per cent increase on results posted in 2011.
Ben Burston, head of research at DTZ UK, explained to silobreaker.com that, since 2001, the trend for increased foreign investment has been heading “steadily upwards”, from a time when just a fifth of commercial property purchases in the UK were by foreign investors.
“Now, for the first time over a six month period, overseas investors account for the majority of investment activity in the UK,” he added.
“We are also seeing foreign investors increasingly attracted to major regional cities in search of yield. However, they are only being tempted beyond the sanctuary of the M25 when security of income is protected by good quality stock, low vacancy rates and institutional leases to secure covenants.”
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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