Investment in commercial property has reached a new record peak of £65 billion according to new research released today.
Following last year's record student accommodation figures, the report into UK real estate investment illustrated a 16% increase on 2013’s £55bn peak and shows the UK as the world’s second largest commercial property market, accounting for 18% of all global transactions and surpassing the 2006 record of £63bn.
Compiled by JLL, the report illustrates that a major factor in the growth has been the flow of capital into the UK’s wider regions, with £28bn of investment, a 70% rise on the figures from 2013. Investors have started to look outside of the UK’s largest cities for a greater variety of investment opportunities in some of the country’s most undersupplied regions.
The most significant trend amongst investors has been the substantial increase in investment amongst asset classes such as student accommodation and care homes. In recent years, a greater diversification of investor funds has taken place as these asset classes have continued to grow. In 2014, alternative asset classes accounted for 19% of all UK property investment, marking a notable increase on the 3% these investments accounted for in 2009.
With the strength of the UK market, now is an excellent time to review some of the investments that Principal International can offer.
With a 9% NET rental return contractually assured for 5 years, Colne Hall student accommodation in Huddersfield is an exceptional addition to the student market in the area. Standing just 600m from the University of Huddersfield and 100m from Kirklees College, it is perfectly located for students in the town.
A unique care home investment, Calderdale House sits near the beauty of the Yorkshire Dales, offering an excellent location for residents. At 8% NET rental return contractually assured for 10 years, the care home will help to meet the demands of the UK’s ageing population.