New forecasts from a leading UK property body suggest that commercial property transaction volumes will remain above the £50 billion mark for the sixth year running in 2018 – with activity expected to be particularly strong in the London market.
In a new report, Colliers International has revealed that total transaction volumes rose to an impressive £55 billion last year, as investment opportunities in London and further afield continued to attract overseas buyers.
The group has said that this trend is forecast to continue over the course of 2018, with “many international investors looking for scale” and targeting the London market in particular.
According to Colliers, ongoing Brexit negotiations will result in greater certainty for domestic and foreign investors throughout 2018, which will do wonders for business and investor confidence this year and increase demand all-round for commercial real estate.
Tony Horrel, UK CEO at Colliers International, said: “With sterling likely to remain competitive against the US dollar, further new entrants, particularly from Asia, are expected to enter the UK market, attracted by buy-side currency plays.
“London will continue to benefit from the stock of large lot-size trophy assets, while the growth in UK and pan-European specialist platforms will also attract major institutional, private equity and sovereign wealth investors,” he said.
He suggested that both development and buyer activity in the London market was likely to remain particularly strong throughout the course of the year.
“Development activity in London, alongside the development potential in the regions, will bring new Grade A product across sectors that will help to drive capital activity in 2018,” he said.
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