A new report published by property group GVA in recent days has revealed that demand for UK commercial property among domestic investors has risen year-on-year.
According to GVA’s report, which was published at the end of November, domestic investors have made a ‘come-back’ to the UK market, accounting for just shy of 12 per cent more acquisitions in 2018 than in 2017.
The figures suggest that home-grown investors have not been deterred by political uncertainty surrounding Brexit which, conversely, has resulted in a fall in the number of European investors eyeing-up commercial property in the UK, GVA said.
Nevertheless, the property group’s figures revealed that UK commercial property remains popular with non-EU overseas investors, with London in particular still “the number one priority target of investors outside of Europe.”
GVA noted that North East England was also popular among both domestic and foreign investors at the moment.
“The North East has benefitted from an increase in demand from investors in the alternative sector, including Student Accommodation, Private Rented Sector (PRS), Healthcare and Leisure,” said Lynsey Underwood, Investment Surveyor at GVA.
Overall, GVA said that the UK commercial property was likely to “remain attractive” in the months ahead.
However, the group suggested that while demand would stay strong in the industrial and office sectors, the retail sector could continue to stagnate.