Commercial property investment transactions in the UK hit a six-year high in 2013, reaching a total of £44.7 billion, according to new research.
Property services provider DTZ reported last month that investment surged in the second half of 2013 with nearly half the yearly total spent in the last quarter alone. In total, transaction values in 2013 rose by 31 per cent on 2012.
More than half (£22.9 billion) of the total in 2013 was spent outside London, a reversal of the picture in 2012, with domestic investors driving the trend.
In contrast, almost three-quarters of the £20 billion spent by foreign investors was concentrated on assets in central London.
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.”
Jason Winfield, head of the UK Investment Agency team at DTZ, said: “There is undoubted momentum in the market. With the economic environment improving, we expect transaction levels in 2014 to match last year’s total.”
As the current positive trend for commercial property continues, Palmers’ commercial property specialists can provide expert advice on a wide range of issues, including site assembly, leasehold and freehold acquisitions and disposals, property financing and joint ventures.
For more information on Palmers’ commercial property services, please visit our website or contact Carey Jacobs or Maisie Yau.