UK industrial land values have increased by 23% in the past year, with the South East seeing the most growth.
A new report by Bilfinger GVA shows that land values have risen by 50% in Enfield, Middlesex, and by 30% in Park Royal, W3, and West Thurrock, Essex.
Of the 13 locations monitored, industrial land values range from £2.6m per acre in Park Royal to £175,000 per acre in Glasgow, where values have remained the same over the past year, widening the gap between London and the regions.
However, investor interest is moving up the country to the East Midlands and North West, which has driven up land values to £650,000 per acre in the Midlands. Less than a year ago they averaged £400,000 per acre.
Nick Collins, senior director and national head of industrial and distribution at Bilfinger GVA, said: “Demand for development sites is still extremely strong in the South East. This was illustrated recently at Barking Power Station in Dagenham, where there were more than 20 bids chasing the 40-acre site, with several bids in excess of £50m rejected.”
Investment in distribution warehouses across the UK totalled £1.7bn in the first half of 2015, comfortably above the five-year H1 average of £1.3bn.
