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Demand by investors for UK commercial property remains strong

The level of demand for UK commercial property remains strong, despite continued lack of clarity over Brexit.

According to the latest GVA review of commercial property investment market, European investors were more risk averse to the UK market because of the uncertainty caused by Brexit but demand from overseas investors, particular from China and the Far East, strengthened in 2018.

Domestic investors have also made a ‘come-back’ to the UK market and have accounted for approximately 12 percent more acquisitions in 2018, compared to the previous year.

In the North East, the lack of availability of investment property is one of the biggest factors affecting growth and there remains strong competition, particularly for prime well let assets.

Regardless of political uncertainty, the fundamentals of the UK commercial property market will continue to make it an attractive place to invest, with London remaining the number one priority target of investors outside of Europe.

Overall, the report concludes, the UK commercial property market will remain attractive with the exception of retail.

Source: Workplace Insight