Commercial property investment reached a record high last year, with activity outside London particularly strong, according to research by DTZ.

The advisory firm said the UK reported a record turnover for property investment last year, with an 11% rise to £56bn (€77bn).

In its 2014 UK Investment Market Update, DTZ said the primary driver was a 40% growth in investment outside central London, rising from £26bn in 2013 to £36bn in 2014.

Foreign purchasers increased investment outside central London by 82%, in a year in which their overall UK spending increased by 26%, from £22bn to £28bn.

Overall central London transaction volumes fell by 10% to £20bn.

DTZ research director, Martin Davis said the continued weight of money allied to low interest rates, as well as the “attractiveness of commercial property”, resulted in a record year for property investment.

“This was also reflected in the diversion of investor interest within the UK toward markets outside central London,” Davis said.   

Funds raised from multiple jurisdictions and North American investors moved into the UK regions last year, DTZ said.

Lot size rose to £29m as a result of an increase in large, £100m transactions.

Office investment outside central London increased by 44% in 2014, to nearly £8bn.

DTZ said shopping centre and retail warehouse investments showed “very strong levels of activity”.

Shopping centre transactions accounted for £6bn, the highest total since 2006.

The advisory firm noted a large increase in multi-regional portfolio sales in 2014, rising 85% to £12bn.

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