The commercial property market saw strong levels of investment in 2014, with record-high turnover pushed to the fore by a surge in investment in the market away from central London, a report has claimed.
Research into the market conducted by DTZ said that in 2014 the commercial market saw turnover levels rise by an impressive 11 per cent. This meant that in the space of the last 12 months, turnover climbed to an all-time high of some £56 billion.
In its 2014 UK Investment Market Update, DTZ said that the level of investment witnessed in the commercial market throughout last year rose by 40 per cent. It climbed from £22 billion in 2013 to hit £36 billion in 2014 as more and more investors saw the value of the regions.
Increasing rents in the cities away from London, such as in the north-west, where Manchester became something of a media hub following the moving of the BBC’s offices from London, meant that there was far more reasons to invest in the regions.
And with the entry price far below what can be found in London as rents rise, the chance to find a strong return is much higher away from the capital.
Foreign investors had a big part to play in this as well, with many more spending in the UK as the commercial sector looked like it was regaining momentum following a few years of downturn. In 2014, DTZ said, the overall investment level from overseas climbed by 26 per cent.
However, it was their activity in the regions that was most impressive. According to the figures seen, 82 per cent more money was spent outside of London by foreign buyers than in the year before, showing just how much of an impact the positives away from the capital are having on the market as a whole.