A record £13.6 bn (€18.9 bn) was invested in UK commercial property in the first three months of 2015, according to research from DTZ.
A record £13.6 bn (€18.9 bn) was invested in UK commercial property in the first three months of 2015, according to research from DTZ.
The strongest-ever start to the year comfortably outstripped the £11.2 bn invested in Q1 2014 and the longer-term Q1 average of only £8 bn.
The market witnessed a typical seasonal fall from the £18.1 bn recorded in Q4 2014, but investor appetite remained relatively strong across all UK geographies in Q1, with a record quarterly volume posted in central London (£4.6 bn) and the rest of the UK (£9.1 bn). Domestic investment in central London maintained its momentum into Q1, with £1.7 bn transacted, compared to £1.8 bn in Q4 2014.
Offices attracted the most investment of any sector in Q1, with £5.5 bn representing the strongest start to a year since 2006.
Investment in the retail sector actually increased between Q4 2014 and Q1 2015, bucking the seasonal trend. The retail quarterly total was £3.7 bn, reflecting two portfolio deals in a property exchange between Tesco and British Land. Tesco acquired 21 supermarkets from British Land for £352 mln, while British Land took over nine shopping centres and retail parks from Tesco for £381 mln.
Ben Clarke, head of UK research at DTZ, said: 'Whether buyers invest in the capital or the regions depends on their individual requirements, but the record Q1 figures for both illustrate the huge weight of money still seeking attractive property investments in the UK.'