Commercial property investment reaches 3-year high
Commercial property investment activity reached a three-year high in 2021, with final figures likely to show volumes in excess of £60 billion. And with recently reduced activity from overseas capital compared to 2020, there may be more investment opportunities than previously expected.
The £60bn was up on both 2019 (£53.7bn) and 2020 (£46.9bn) levels and up 5% against the five-year average (£56.8bn).
There was record-breaking activity in the industrial sector (including distribution centres and multi-let parks) with over £17bn in transactions - almost double the five-year average. Office and retail investment volumes also improved on 2020 figures and investment in leisure markets also recorded increased activity.
Overseas capital accounted for 47% of all activity by value. Whilst in line with the five-year average, this was down on 2020’s 51%. US investors were the most active (£13.7bn), while Middle Eastern and Far Eastern buyers were found to be less acquisitive than in previous years - could this be an opening for more property investment opportunities?