Since property owners have had to slash prices for commercial property in the UK, there has been an avalanche of interest from overseas investors.
With prices falling by 20% in the downturn, there is no surprise that cash rich investors from abroad are casting a keen eye over the UK commercial property market. The question is whether these bargain hungry investors will continue to take an interest after prices recover and the recession passes?
The answer to this question is almost unequivocally “Yes”. Part of the reason is that the overseas interested parties seem to be in a much stronger financial position than many of their UK rivals.
London is the epicenter for overseas investors in commercial property, with CBRE revealing that “73 per cent of commercial property purchases by value in central London last year were made by foreign investors.”
In total they poured £5 billion in the UK market in 2009, saving it from an even greater collapse. In the past decade, overseas investors have only really accounted for around half of all transactions.