According to the Royal Institute of Chartered Surveyors investment demand throughout the UK has seen a notable increase in all areas of the market during the 4th Quarter of 2016. This meant it was the second straight quarter during which demand had increased, as 21% of respondents to their survey saw a rise in enquiries, up from 9% in the 3rd Quarter.
Likely as a result of the falling value of Sterling, it was also reported that foreign investment saw a rebound with 20% more respondents seeing a rise in demand. This is a considerable increase compared to the fall of 27% in demand during the 2nd Quarter of 2016.
Simon Rubinsohn, RICS Chief Economist issued the following statement:
“The results for the Q4 survey suggest that the commercial property market is continuing to attract investor interest despite ongoing concerns about pricing in the capital and the prospects for the economy more generally. Indeed, the feedback we have received is consistent with a renewed appetite from overseas buyers for UK assets.
Meanwhile the results for the occupier market highlight the resilience of the economy in the wake of the vote to leave the EU, but also clearly demonstrate the demand for large warehouses to support the development of the distribution industry as consumers increasing go online to make their purchases.”