Strong outlook for commercial property transaction volumes

Strong outlook for commercial property transaction volumes

New industry forecasts suggest that transaction volumes in the UK commercial property market will remain above £50 billion for the sixth consecutive year in 2018.

According to leading property body Colliers International, 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 says that industrial assets, high-rise office spaces and mixed-use developments have all performed well in recent years – a trend which it believes will continue this year.

Tony Horrell, UK CEO at the group, said that the greater certainty expected to come from Brexit negotiations this year will improve business and investor confidence, inadvertently increasing demand for commercial real estate from both domestic and overseas investors.

“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,” he said.

“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 added that many investors would be looking for “scale” as they seek to broaden their portfolios all across the country.