Capital flows into the regions hit £28bn in 2014, a 70% rise from the previous year and the highest on record in a year that saw real estate investment in the country reach a new high point of £65bn.
Research by JLL shows the South East, Scotland and West Midlands were the top three regions for investment, with volumes of £5.7bn, £3.2bn and £2.7bn respectively.
London was the leading global destination for real estate investment in 2014, recording £27.5bn of transactions. Some £17.5bn of this was from overseas, meaning that, despite volumes being 2% down on the previous year, the city remains the most popular in the world for cross-border real estate investment.
The UK now accounts for 18% of all global transactions, making it the second-largest commercial property market in the world.
Chris Ireland, chairman and head of capital markets UK at JLL, said: “2014 activity cemented the UK as one of the best markets for direct real estate investment and one that is being driven by both domestic investors attracted by the relative high returns property offers, and overseas investors drawn to the liquidity and transparency of the UK property market. In light of the low interest rate environment and volatility in other asset classes, we envisage another robust year for UK commercial property.”
alex.horne@estatesgazette.com
