Foreign investors accounted for over 45% of the UK real estate investment market in the first half of 2007, according to new research from Jones Lang LaSalle. This equates to £12.5 bn of the £27 bn transacted in the UK in the first six months of this year. Foreign investors accounted for £6.2 bn of net investment in this period.
Foreign investors accounted for over 45% of the UK real estate investment market in the first half of 2007, according to new research from Jones Lang LaSalle. This equates to £12.5 bn of the £27 bn transacted in the UK in the first six months of this year. Foreign investors accounted for £6.2 bn of net investment in this period.
Andrew Hynard, head of national investment at Jones Lang LaSalle, commented: 'The overall volume transacted by overseas investors is very positive for the UK property investment market. Although we see activity slowing in reaction to rising interest rates and expected lower rates of return, the healthy demand from overseas investors is encouraging. Ours is a highly transparent market and the economic fundamentals, notably the continued expansion of financial and business services, continue to provide a firm backdrop for the continued health of the asset class. These characteristics are recognised by overseas investors and we expect demand from this group to be sustained for the remainder of 2007.'
'It is interesting that at the same time, many UK investors are diverting their attention to continental European markets, and in some cases further afield, to seek higher returns,' he said.
