The UK’s commercial property sector has seen an increase in investment of 66% in January 2018 when compared with the same period last year, a new industry report has shown.
This increase represents an additional £4.2 billion pounds worth of investment, with the commercial sector in the UK continuing to show substantial growth despite ongoing instability surrounding Britain’s withdrawal from the EU. The appeal of the UK’s commercial property sector to investors is demonstrated by the significant increase in overall investment in this area, with total investment reaching £65.4 billion in 2017, representing a 26% increase when compared with the figures for the previous year.
Closer inspection of these figures shows that growth in the commercial sector is being led by investment in the office and industrial sectors, with financing from overseas representing over half the total investment in these areas. Investors from Asia are seen to have been most active, representing nearly a fifth of the total £11 billion invested in office and industrial property in the UK. The explanation for the particularly strong showing in these particular areas is seen to be found in the large occupier demand which has occurred as a result of the exponential growth in online shopping in recent years. This is seen to have driven investor appetite, 2017’s figures showing that the industrial commercial property sector has benefited from a rise in investment of 80% when compared with the figures for 2016.
The UK remains an attractive proposition for European corporate investment transactions such as venture capital, private equity and mergers and acquisitions, these new figures show. In the last five years alone, volumes have increased to £6.4 trillion, with the UK representing on average around 30% of all of these transactions by value. These figures demonstrate ongoing confidence in the UK as an investment market, it is argued, with the consequence being sustained growth of the real estate sector as companies based in the UK continue to grow and expand their recruitment following further injections of capital.
Wilford Smith provides high-quality expert property advice to those seeking to invest in commercial property in the UK, whatever the nature of your business. Our experienced commercial conveyancing lawyers are experts at preparing contracts, skilfully managing the purchase and sale of commercial property and reaching binding agreements on our clients’ behalf. By instructing a lawyer from our commercial conveyancing team at the earliest possible stage, you can be assured that you are receiving the highest quality advice to support you in meeting your commercial objectives. We will ensure thorough analysis of documentation and are always on hand to answer any queries you may have at any stage, providing you with clear, straight-forward and jargon-free advice.
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