Commerical property investment enjoys record year
Commercial property investment in North East England is on course to beat last year’s record levels, reflecting the desire for investment property in the UK.
UK commercial property investment is expected to rise by £2 billion in 2005 to a staggering £30 billion.
Mr Davison, an associate director at DTZ, said:
“There is a huge weight of money invested in commercial property across the board… Over the past two year, institutions have bailed out of direct property, preferring to invest in property through indirect unitised investment vehicles.
“However, that has not been the case in North East England... In the past eighteen months, we have seen a number of institutions increase their investment in the region.”
The demand for commercial property investment in the North East has pushed down yields for all types of property, with yields for Newcastle offices dropping from 6.5 per cent to below 6 per cent.
While banks continue to lend to private investors, the reduction in rates is expected to help maintain a status quo, rather than putting more pressure on yields.
Date: 01.09.05
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