Foreign enthusiasm

As London reaches saturation point for investors, the spotlight is swiftly shining on the UK’s outside regions and beyond.

Over half of those surveyed by RSM believe between 30-60 per cent of investment in UK commercial property will come from overseas investors over the next 12 months, while over half don’t think UK based investors are looking to overseas markets for better returns on real estate investments. Of those surveyed, over 60 per cent saw international investment in UK real estate as ‘essential to the growth of the UK commercial property sector’.

Additional tax restrictions appear to be the biggest hurdle preventing smooth investment in the industry, with half our respondents seeing this as a ‘major barrier’.

Despite the uncertainty around Brexit the UK is still seen as fundamentally sound for long term real estate investment.”

Simon Hart, Knowledge Management and Brexit Lead Partner, RSM

Real estate 360

Unsurprisingly, this is only just trumped by political instability, with the UK’s possible exit from the EU coming in close behind. None of this is unexpected, but many are surprised that it isn’t being seen in fact as a bigger concern.

But who is investing in the UK? This is the big question as the sector evolves to outside pressures and changing funding types. Our respondents believed that real estate funds will be the most likely to spend the most in the regions in the next 12 months, but why? Possibly because they are under pressure to deploy the significant capital they hold.

The North, and in particular Manchester, is seen as a viable investment alternative to London and the South East. Further devolved powers and planned infrastructure projects across the North will help boost productivity and only enhance this investment offering.”

Ian Taylor, Real Estate Lead Partner for the North West

For further information, please contact Howard Freedman, National Head of Real Estate and Construction.

Real estate 360 2018/2019

We interviewed over 250 industry experts from across the UK for our Real Estate 360 report. Let RSM’s 2018/2019 survey results give you a 360 degree view of the real estate market, so you too, can look forward.

Download the full report