A recent report suggesting a rise in property deals throughout Eastern England has shown Simon Morris the profitability to be found in the region for UK property investment funds.
A Region’s Economic Capacity Can Spur the Profitability of its Property
As a London-based property investment specialist, Simon Morris often advises UK property investment funds on which regions they should invest in, to ensure maximum returns on their property investment portfolios.
A region’s economic capacity can directly effect a fund’s ability to draw profit from said region. This point was emphasised by a new report this week, which suggested that property deals have risen throughout Eastern England due to the rising strength of Cambridge’s technology sector.
Commercial Property in the East Measures 45% Rise
According to Business Weekly, inside track data from Lambert Smith Hampton (LSH) has shown that property investment in Eastern England climbed by four times the level of the national increase for the second quarter of 2014.
Specifically, LSH’s latest report revealed that over the past year, UK investment transactions hit £51.4 billion, whilst commercial property investment in the East for the first six months of 2014 measured £734 million, a 45% increase from the same period in 2013. Experts have attributed this to the region’s life science and hi-tech sector, which has been growing for some time.
UK Institutions Turn to Regional Investment
LSH also commented on the rising level of investment from UK institutions – up from £4.5 billion for the first half of 2013 to £7.4 billion for the same period this year, as they increasingly invest in regional property markets. A market neglected by overseas investors, who have dominated other markets over the past few years, UK institutional regional investment climbed to £9.5 billion in the first half of 2014 from £5.9 billion the year before.
Peter Williams, head of Lambert Smith Hampton’s Cambridge office, commented on the matter. Williams said that: “The pick-up and shift in investment activity over the last few months means we have seen a fundamental change in the market: deal volumes are up; investors, especially UK institutions, are much more active in the regions; and prices outside London are now on the rise. The Eastern region has been a major beneficiary of this improving dynamic, with investment beginning to return to peak levels.”
The East is a Prime Market for Commercial Property Right Now
Simon Morris concurs with Williams. The East of England has been a major beneficiary of this dynamic, as investors see the value of property in the region, spurred on by its rising technology sector. With values returning to peak levels, Simon Morris has found that there is certainly profitability to be found in the East of England for investment in the region’s commercial property at this moment in time.