West Midlands pulling in investors as London market overheats – PwC

THE West Midlands is attracting more real estate investment as optimism returns and London’s marketplace shows signs of overheating, according to real estate experts at accountancy and advisory firm PwC.

A new report, entitled Emerging Trends in Real Estate – Europe 2013, published jointly by the Urban Land Institute (ULI) and PwC, reveals that real estate developers and investors across Europe are feeling relatively more optimistic about the future.

The majority are expecting profits to rise in the coming year, despite the flat economic outlook. Many are on the look-out for investment opportunities and the UK is proving to be an attractive prospect.

However 54% of investors now think that London property is over-priced and this is causing investor interest to spill out to regions like the West Midlands.

Alistair Reason, PwC’s Midlands-based real estate expert, said:  “Real estate investors have taken comfort from the fact that they have survived the turmoil of the past few years and are now turning their attention to the best bets for future investment.

“There are many reasons to be cheerful for those with access to capital and debt.  These businesses are well placed to take advantage of the opportunities that exist in the UK marketplace and specifically, here in the West Midlands.

“As the London market shows signs of overheating, we have noticed an upturn in interest from inbound investors, including some from the US, who are buying up Midlands-based stock, which is currently held by property holding companies and banks.”