UK investment volume remained steady in Q2 at £7.5bn, compared to £7.2bn in Q1. The H1 2013 total of £14.7bn compares with £15.3bn in the same period in 2012. The rolling four quarter total is now £33bn, down £1bn from Q1.
Activity in Central London increased in Q2, despite the continued short supply of marketed stock, rising to £3.1bn. Investment in the rest of the UK stayed steady at £4.4bn. Foreign interest exceeded domestic in Q2, above all in Central London, where it accounted for over 80% of turnover.
Investment by domestic investors was down approximately a sixth compared to Q1, both in Central London and the markets outside it to a similar degree. Domestic investors, increasingly being priced out of Central London, are still reticent about investing outside it, whether due to risk aversion, debt availability, or vendor/purchaser pricing mismatch.
However, regional city office investment, which reached a historic low in 2012, totalling only £705m, has progressively increased in 2013, with H1 2013 totalling £550m. The last quarter has seen steadily improving sentiment; there is more confidence, more buyers in the market, greater liquidity and above all ability to sell at realistic prices.
Source : DTZ (Groupe UGL)