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Investment in UK property last year ended superbly

Landlord Expert
Investment in UK property last year ended superbly - property invesment - UK - commercial property

Investment in UK commercial property hit 32.5 billion British Pounds in 2011, in part due to a boost in the final quarter of 2011 as transactions were pushed through before the close of the year, according to new research from CBRE.

Despite the UK investment market finishing the year nearly three billion pounds below 2010’s overall activity (35.76 billion British Pounds), the strong finish in the last quarter of 2011 demonstrates investors’ continued attraction to the UK commercial property market. The UK’s 2011 total investment turnover is particularly telling when compared to 2008 (24.25 billion British Pounds) and 2009 (25.2 billion British Pounds) figures. Risk aversion and the consequent trend of ‘flight to quality’ have been the main drivers for investors as they attempt to avoid economic uncertainty in the Eurozone, coupled with the attraction of the UK’s long lease structure, security of income and it’s liquid, transparent market. 

The flight to quality is particularly relevant to London, which accounts for 8.4 billion British Pounds of the UK’s total for 2011, and continues to be a strong magnet for foreign investors. An emerging and prevalent trend that looks set to continue is the interest from foreign investors in London, notably Asian and North American Sovereign Wealth Funds and pension funds, as they are once again drawn to the prestige and stability that the UK’s capital has to offer. 


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