Commercial Property Investors focus on London and Southeast.
01 February, 2012 | Web design
Commercial property Investors only have confidence to invest in London and the Southeast. And this focus on the Southeast is having a damaging effect on the rest of the country. This is the opinion of Phil Clark, Head of Property Investment for Kames Capital and Chairman of the Investment Property Forum.
He believes uncertainty about the Eurozone along with a stack of impending regulation has reduced investor confidence. Despite initial optimism at the beginning of 2011, by the summer worries about the survival of the Euro and how that would affect the market brought with it pessimism within UK commercial property.
Yet in 2011 the UK commercial property market saw a positive 8.1% 12 month return and the volume of commercial property transaction were around £30bn.
Nevertheless banks continue to reduce their exposure on commercial property in the UK. But in their place there are some institutional investors who see an opportunity to fill the void left by the banks, by investing in good quality property.
By Phil Burrows