UK takes over Germany as the commercial property investment hotspot

UK takes over Germany as the commercial property investment hotspot

New research from BrickVest, the online real estate investment company, has revealed that the UK has seen a significant upturn in commercial property investment in the last quarter of 2017, even overtaking Germany as the number one destination for commercial property investors currently.

Around 29% of more than 3,000 worldwide commercial property investors who took part in Brickvest’s study have indicated that they are now active in the UK market. Previous number one country Germany has seen its popularity slip from 32% to 23% over the last quarter of 2017.

CEO of BrickVest, Emmanuel Lumineau, said: “Our latest barometer reveals that Germany is no longer the favoured destination for commercial real estate investment, contrary to its position in the third quarter of 2017. Rather, the UK has once again become the most popular region for our investors.”

The search for high income yields has been a significant factor in the UK’s rise to top spot. A shift away from capital cities to secondary cities has also been a major contributor with cities such as Manchester, Birmingham, Liverpool and Leeds seeing lots of commercial property investment activity over recent months.

Further research by Shawbrook Bank has shown that one of the key drivers in the UK’s commercial property surge is the increased confidence in the UK’s lending market, with 78% of commercial financial brokers feeling confident that 2018 will be a buoyant year for the UK commercial property market.