New analysis has suggested we saw a surge in the rates of foreign investment in UK commercial property; though slow movement in the latter half of the year means that there are challenges ahead.
In previous years we have had the second strongest year on record for commercial real estate in the UK, with £67.5 billion invested, second only to 2014 which saw investment totalling £70.7 billion. This money has been invested in many areas like gardens, doors and windows. If investors want quality windows then they should get a Double Glazing in Gloucester company to install them through sites like www.firmfix.co.uk/. The research was conducted by CoStar Group, an organisation that provides information on the commercial property market. Despite these impressive figures, investment was down for the second half of the year, and this was attributed to good opportunities becoming harder to find and economic uncertainty affecting the decision-making process for many.
The analysis also reported 16% growth in office investment, making commercial conveyancing a busy industry to be a part of.. A huge part of this surge was down to foreign investors seeking development opportunities in the UK, though investment from certain parts of the world was down. Investment from the Middle East dropped by 62% to £1.6 billion, marking the lowest figures for several years. This was a huge contrast to investments from Singapore and Hong Kong, which reached £6.4 billion. Despite these astonishing figures, CoStar director of market analytics, Richard Yorke has said that the market then showed signs of easing up.
Sector by sector
Sector performance saw office investments sweeping the board with £29.5 billion spent, compared with spend in the retail sector significantly down on previous years. Overall though, CoStar reported that offices, retail, and industrial property investments all had lower volumes that previous years. Yorke added that sharp increase in yields made high value opportunities harder to come by, which accounted for the slower half of the year. Consultants however, would feel the impact of a strong year as they advise further along the process.
Yorke also said that the UK was likely to remain a popular choice for foreign investors due to scale and liquidity, so even though 2020 could pose some challenges, there are also opportunities for those who know where to find them. He added that the UK’s uncertain future because of Brexit could also be a factor that may have an impact on foreign investments.