A research produced by
London has, since the global financial crisis, re-asserted itself as one of the world’s leading destinations for global real estate investment. As the capital’s economy has grown, investors have been richly rewarded. Now, some international money is starting to target other UK cities in search of higher returns. Why is this, and what can investors venturing outside the capital expect?
As the UK’s economic recovery spreads across the country, the demand for quality office accommodation is increasing and rents are starting to rise. The big question is whether these smaller cities have sufficiently large and diverse economies to produce sustainable growth, to attract and retain significant occupiers, and to present an attractive long-term investment proposition?
The answer, in our view, is a selective “yes”, particularly for those investors who value income as a long-term driver of returns. To identify the best opportunities, we explore the “vital signs” of the UK’s cities, assessing the outlook for the office market in each.
Source :M&G Real Estate
