In light of the release of new details illuminating the viability of the market, this week Simon Morris asks whether UK property invest funds should invest in North West commercial property.
All About Location
Simon Morris’ experience as an independent property specialist, who uses his expertise to advise UK property investment funds on how to generate healthy profit margins from their property portfolios, has shown him how to effectively invest in property.
Simon’s experience has shown him one cardinal rule – location, location, location. Catch the right location at the right time, and you could generate long-term, high volume revenue streams. New data suggests this is the case with the North West of England.
North-West Commercial Property Market Measures £2.1 Billion
Research conducted by Lambert Smith Hampton (LSH), a property consultancy, has shown that £2.1 billion has been poured into the North West’s commercial property market by UK and foreign investors so far in 2014. More is expected to come in by the end of the year.
Summer was shown to be the market’s peak season. In the summer months, investment in the North West’s property market climbed to a staggering £722 million. This is a colossal 131% increase on last year’s figure.
One in Every Eight Pounds Goes to North-West
These figures have resulted in LSH suggesting that not only is this the North-West commercial market’s best year since 2011, but that one in every eight pounds invested into the UK’s commercial market, goes to the North-West.
LSH’s regional head of capital markets, Abid Jaffry, commented on the rise of the North West’s commercial property sector. According to the Manchester Evening News, Jaffry said: “Competition among investors continues in the region for both prime assets and those that offer add value opportunities. The North West is set to enjoy a record year in terms of returns and investment volumes.
“Investment in the region has escalated significantly with improved confidence on values and the strengthening occupier markets. In addition, the returns being offered in some of the secondary markets remain attractive to investors wishing to take advantage of the higher yields and positive occupier sentiment.”
Invest With Caution
The data all seems to suggest that the North West would prove a lucrative market for any UK property investment fund. However, Simon Morris would advise caution – as is the case with wisely investing in London property – only through creating a careful investment strategy, can you capitalise on the benefits the North West’s commercial property market could potentially bring.