Investment into the nine major regional office markets was £682m in the third quarter 2018 – a 39.5% fall on the same period last year – according to data from GVA.
Although investment volumes were 29.9% above the 10-year average, the nine major regional markets – Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle – have seen their level of activity drop considerably from peaks in 2017.
Manchester, Birmingham and Bristol led the regions in Q3, each attracting at least £140m in investment.
Yields have fallen over the past 12 months in each of the cities, with the exception of Cardiff and Manchester. Average yields have been on a consistent downward trend since September 2016.
Despite this, GVA has forecast lower volumes over the next six months as Brexit approaches.
Mark Frampton, senior director of investment at GVA, said: “Sentiment does remain positive, although it has become increasingly cautious as we approach the Brexit deadline. We expect this caution to be reflected in market volumes over the coming two quarters.”
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @karltomusk or @estatesgazette
