Bulletin

UK commercial property investment volumes to exceed £70bn in 2015

London - Some 92% of UK-based financial services - SantanderCB

Research by UK property consultancy Carter Jonas has forecast that investment volumes in UK commercial property are set to exceed £70bn in 2015, with Propertydata figures showing that total deal volumes for the first nine months of this year were up by 17% against the same period in 2014 when they were £41.7bn. Fourth quarter deals are expected to exceed £20bn, as they did in 2013 and 2014. Much of this year's investment capital has come from overseas, up 45% on the same period last year at £24.2bn. This compares with a market share of less than 25% some 15 years ago. The majority of the growth in activity has been witnessed in hotels, leisure and specialist property assets. Investment volumes in offices and retail warehousing rose by 12% to 13% over the same period. With significant yield compression already a feature across the mainstream sectors as good value investment opportunities are becoming difficult to source, investors are increasingly seeking better returns through value-add investments and development, as well as sectors outside the mainstream such as student housing and the private rented sector.

 

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