Investment volumes in UK commercial real estate are expected to exceed £70 billion in 2015, and if it does it is going to be the the highest on record, based on a latest research to be published, according to Property Wire.
It has been recorded that about £50 billion of transactions were closed within the first three quarters of 2015 and with a healthy trend the next quarter is expected to see more than £20 billion to be added. Basing on the study of Property data figures, total deal volumes for the first nine months of this year were highter by 17% if compared to the same period for the year 2014 when they were £41.7 billion.
Overseas investors are said to have contributed the bulk of this capital, accounting nearly 50% of total investment for the current year. Thus it has been forecasted that by the end of the year, international investors will account for more than 50% of the UK real estate market for the first time. 15 years ago, the foreign investors only had a market share that was less than 25%
The sharp increase in deals involving hotels, leisure and specialist property assets are said to be the greatest contributing factors. Needless to say, investment volumes in offices and retail warehousing also increased by 12 to 13 per cent over the same period.
"There is still plenty of capital chasing commercial property, with this year set to be record breaking. However, with the market edging towards its natural peak in the cycle, a pause for breath seems likely in 2016,' Property Wire quotes what head of research at Carter Jonas Darren Yates said. "Moreover, investors will need to factor in headwinds such as the anticipated interest rate rise and the EU referendum may start to play on investors' minds.
Do you think the figures will indeed reach what had been forecasted?
