International Investment Hikes Up the Price and Demand of UK Property

Prices of the commercial properties in the UK are on the rise, as annual investment in country’s property has touched £42 billion mark in the first quarter of the year. These figures came from leading research firm called Real Capital Analytics. This is the highest level that UK’s commercial property market has reached after 2007 turmoil, according to the latest figures. The reason behind this hike in the prices of the commercial property involves number of factors, but it’s certainly not because of the fact that investors have suddenly fallen in love with the property in London. 

The two major reasons behind this rise in demand for London property are lowering of the interest rate and decrease in the returns on bonds and equities. These two causes forced the investors to find new sources that offer better yield. Thus, when investors looked out for new sources they found UK property more luring, as the country has stable political situation. In addition, its economy is also reviving from the recession that hit it almost six years ago. Plus its capital city London is surely an international metropolitan.

Due to these fine points, international investors have started pouring their money in the country’s property. Besides them independent wealth funds and institutional investors like insurance and pension funds are also battling with one another to get hold of commercial property in London. That is pushing the prices of the UK property to ever high level.Cushman & Wakefield’s figures revealed that over one third of the money spent in the London property market during the first three months of 2014 was made by foreign investors. Yet in this buoyant market, there were only a few purchases of properties that were noticeable.

One of these prominent purchases came from Lodha, an Indian property company that spent £300 million during last year to acquire a Canadian embassy building that is located at the Grosvenor Square. The second most notable investment was made by Greenland, a Chinese development company that had acquired Ram Brewery site that is located in the south of London. The Chinese builder utilised £600 million to buy the site. Both the investments had raised the eye brows of even most experienced property watchers. The trend was further exemplified when two more record-breaking investments were made at the start of the year.

The first of these two investments came from GIC, an independent wealth fund of Singapore that had exhausted £1.7 billion to buy 50 percent share in the Broadgate office. Then, it was Kuwait’s St Martins, a property firm, turns to make the transaction, as it used nearly same amount of money to buy More London estate in the UK. In brief, it seems that UK property will quickly gain the prices which it has attained in 2007, if the demand continues to rise. Thus, it’s a golden opportunity for all types of investors to invest their money in the UK property market and enjoy amazing yield.

Given that commercial property is not the only lucrative deal, as they can also invest in student property too. And when it comes to student or professional property in Leeds there is no match to Oasis Properties.