A new study carried out by prominent real estate group Knight Frank suggests that the UK will surge in popularity among overseas commercial property investors in 2019.
The group’s survey quizzed a sample of 155 high-profile executives managing more than £500 billion worth of global real estate, asking each investor about their intentions for the future in the short and medium-term.
Traditionally, respondents to the annual survey have always cited Germany and other European economic powerhouses as their most desired destination for future investment.
However, this year’s survey found that more than a fifth (21.1 per cent) of respondents felt that the UK was the most attractive country for commercial property investment – up from just 12 per cent who said the same last year.
Chris Bell, Managing Director for Europe at Knight Frank, said: “The emergence of the UK as the European market of choice in 2019 is interesting, suggesting many think that pricing looks attractive.”
Knight Frank’s survey found that many investors were eyeing-up ‘Brexit bargains’ in the years ahead, in anticipation that the pound will temporarily fall in value as Britain moves to depart the European Union (EU) next year.
The report noted that commercial property prices have remained relatively stable since the Brexit vote in 2016. However, it pointed out that the UK has already become cheaper than markets such as Germany and France, where returns have shrunk recently as a result of mass investment and growing competition.