Foreign investors are shifting their interest away from London and are now looking to invest in Britain’s more regional markets, a regional investor has revealed.
As London’s property is becoming more and more expensive, foreign investors – especially from the Middle East – are checking out the regions for better returns.
Focusing on some of the biggest regional growth areas, such as Manchester, Birmingham and Liverpool, agents express an increasing interest from the Middle East. Two or three years ago, interest from the Middle east or Asia in projects not located in London would’ve been extremely hard to imagine.
More recently, however, the regions have become more and more popular. A big reason for this may as well be the outstanding job the Government and regions do when it comes to rejuvenating areas. Whether it’s something big like the Northern Powerhouse initiative or something smaller like the latest Christmas advert for L1, Liverpool’s biggest shopping centre and the city’s master piece.
Whilst the overall attitude to regional property in a post-Brexit Britain is positive, it’s also important to consider the short-term. The next two years may bring some uncertainty with them, leading to a rather slow increase in prices before the big boom is forecast to hit the regional market.
The rental property market is however not the only sector benefitting from the shift in investment interest. Commercial property has also experienced a boost in recent times.
John Duckworth, lead director for UK occupier services at JLL, said: “More firms than ever before are assessing their portfolios to consider national on shore locations across the UK. This is a trend that we see as only accelerating in the years to come.”
“Many are exploring ways to reduce cost, attract talent, and drive efficiencies in their operations. UK cities from Bristol to Edinburgh are benefiting as firms seek to take advantage of the talent pools and cost benefits of an alternative UK presence to complement their London offices.”