Levels of investment in the commercial property sector are now at their highest recorded since 2007, according to the latest report compiled by DTZ. It said that the overall amount of money put into the commercial market in 2013 was GBP 44.7 billion, with the second six months of the year in particular being the biggest factor in boosting the investment levels. Regional strength outside of London also proved to be one of the biggest plus points throughout the year.
According to the figures from DTZ, nearly half of the GBP 44.7 billion invested was spent in the last quarter of the year alone. This was a startling reality that was a result of the growing economy. The economic expansion in the UK started early in the summer, and by the end of the year it had reached 1.9 per cent, giving a strong boost to the business sentiment and commercial property market as a result. It meant that the year as a whole experienced a 31 per cent growth on the GBP 34.1 billion seen in 2012.
And regional markets had the biggest impact over the course of the year. Scotland and cities in the north were all experiencing a growth in business levels throughout the year, and this meant that GBP 22.9 billion was spent outside London, which Property Magazine International said was a reversal of the trend witnessed a year earlier.
Richard Yorke, head of UK research at DTZ, said: "Domestic investors' willingness to spend matched the improving economic picture in the UK throughout 2013, resulting in their outlay increasing by 42 per cent compared to 2012. Domestic investors are well placed to identify good opportunities across the UK and sought to exploit the record yield gap between London and the regions. Many UK firms sold London assets to fund their investment activity outside the capital, selling 'high' in London and buying 'low' in the regions."
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- Tuesday 11 February 2014