Overseas investors now account for 28% of UK investment property, compared with 17% in 2007, according to the Investment Property Forum (IPF).
Research by the IPF found that overseas investor holdings were growing relatively quickly, particularly in “buoyant” central London markets, with 77% of foreign holdings in the UK capital.
Overseas investors now account for 16% of all commercial property, compared with 9% of all commercial in 2007.
The UK’s London City office market is 61% owned by overseas investors, while the West End and Midtown office markets now make up 39% of overseas investment.
“These markets, together with offices in Docklands and suburban London, London hotels and, to a lesser extent, retail in central London, have the highest rates of overseas ownership,” the IPF said.
IPF said the value of UK commercial property and the amount of stock held by investors were at a record high.
Commercial property – owner-occupied or held as an investment – increased to £871bn (€1trn).
Higher pricing was the main reason for a rise since 2007 in the value of the UK’s commercial property stock.
While the total value of commercial property in London is 38% higher than in 2006, in the rest of the UK it is 14% lower.
Since 2006, rents have increased and yields have compressed in London, the IPF said.
Rents in the rest of the UK conversely have declined, with yields moving out.
Retail remains the largest commercial property sector, accounting for 41%.
Collective investment schemes and listed property companies, including UK REITs, are the largest domestic owners of UK investment property, accounting for 31% between them – compared with 17% in 2007.
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