CoStar’s 2017 UK Commercial Property Investment Report: A Surprisingly Strong Year

By Mark Stansfield - Wednesday, February 07, 2018 13:48

Robust investor demand for regional assets in the final quarter capped a surprisingly strong year for UK commercial property investment in 2017, according to CoStar’s newly released investment report.

At £18.9bn, volumes in Q4 2017 were up 18% compared to Q4 2016 and brought total spending in 2017 up to £62.1bn, a 27% increase from 2016 and just 8% below the 2015 figure. The number of deals soared above 5,000. This robust performance was underpinned by strong occupier market fundamentals. However, it is not a uniformly positive picture across the country: our report picks out the winners and losers at a market/sector level.

Key themes over the year included a big rise in regional investment (which accelerated in Q4), the enduring popularity of the industrial and student accommodation sectors, a rise in domestic investment (it was another record year for spending by local authorities), and a widening yield gap between prime and secondary property.

For more trends and statistics in UK commercial property, including a special feature on the top performing office and industrial markets (using CoStar’s new analytics functionality), please click here to access our 2017 UK Commercial Property Investment Report.

mstansfield@costar.co.uk

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