Overseas investment flooding in to property market
THE North-West has been named the second highest region for overseas investment into the UK property market according to a survey.
The survey carried out by RSM among decision makers in the real-estate sector, revealed that nearly a 33% believed more than half of the investment into UK commercial property will come from overseas investors over the next 12 months.
The large majority of respondents said that most overseas investment would be in the London property sector, however two-thirds said they believed that if priced out of the capital, investors were more likely to look to the regions for investment.
Institutional investors and pension funds were thought to be the heaviest investors outside of London, with high net worth individuals and private companies coming a close second.
In terms of regions, the South-East was named as the region that the majority of respondents believed would attract the most investment, 51% saying they thought the investment would be in residential property, compared to 39% saying commercial property.
The North-West came second, with 31%t saying this would be in commercial property, and 15% saying they believed it would be in residential property.
In terms of commercial property, the West-Midlands was the third preferred choice for the respondents with nine per cent, with the third place for residential property being the South-West also at nine per cent.
Howard Freedman, RSM’s UK head of real estate and construction, said: “There is genuine concern within the property sector that the weight of capital coming into the UK will cause a pressure on values, with the subsequent risk of a ‘bubble’ developing.
“It is clear there is a scarcity of investment and development opportunities in London, and that this is now forcing investors to look further afield within the UK than in previous years.
“On the whole I think this is good news for the property sector in the regions, and one that I think both commercial and residential property owners need to look to potentially take advantage of over the coming year.”
