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Record Investment Levels In UK Commercial Property

Record Investment Levels In UK Commercial Property

The commercial property market, which was one of the surprise stars of the investment world in 2014, thanks to the fantastic returns it offered buyers, has kicked on from the exceptional end it had last year. Strong investment levels in the first three months of 2015 indicate that the confidence investors have in commercial stock has remained high.

According to the latest findings published recently by DTZ, the first quarter of 2015 saw the level of commercial property investment hitting £13.6 billion. Although this figure was far lower than in the final quarter of last year, when investment was at £18.1 billion, seasonally, it was very strong.

The quarter was far ahead of the same period in 2014, when investment sat at £11.3 billion.

It means that 2015 has so far been the fastest year since records began for commercial property investors. It is also far ahead of the long-term average for quarter one of some £8 billion.

The regions also remained strong throughout the first quarter, with areas outside London welcoming more than double the level of investment that was seen in the capital itself. This is a continuation of the trends seen in 2014, when the regional areas of the UK became very strong as more and more companies moved north of London.

Overall, DTZ said, the office market remained the strongest area of the commercial property sector, with the money coming into this asset class standing at £5.5 billion in the first quarter of the year. This was the fastest first three months of any year since 2006, it reported.

Ben Clarke, head of UK research at DTZ, said: “Whether buyers invest in the capital or in the regions depends on their individual requirements, but the record quarter one figures for both illustrate the huge weight of money still seeking attractive property investments in the UK.”

London-based property agent, Experience Invest agrees with the latest research by DTZ and has reported that there has been an upward surge in investor demand for commercial property investments in the UK.

“We have witness a surge in enquires about the UK’s commercial property market this year and with a wide range of products available, our investors are benefiting from attractive returns from this strengthening market,” Dale Anderson, project manager at Experience Invest commented.

Byline

Commercial property has kicked on and built on a very strong 2014 so far this year.

Extract

The first three months of the year saw strong investment levels, according to DTZ.

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