UK Specialized Property Investment Rises

Specialized UK property investment records higher transaction volumes.  Nearly £18 billion invested in the past year, an annual increase of 40% shows latest research. In a Knight Frank Report entitled The Human Factor: Specialist Property, shows a UK Specialized Property Investment Rises substantially compared to last year. Capital is being drawn into the UK’s specialist property sector, a total of £17.7 billion, which equates to a 40% increase on last year. Furthermore, it is predicted that this trend will continue to increase. Most impressive of the specialist property assets are the numbers in the Hotel Investment space. The Hotel Investment Market drew in of investment  £5.5 billion last year. Therefore, up a whopping £2 billion on the previous year. UK Specialized Property Investment Rise now accounting for 27% of the UK commercial property market, Which is a higher proportion than ever. The specialist markets are rising faster than investment in the retail and industrial sectors. Specialist markets have doubled its market share in just the last three years. Furthering it’s meteoric rise, there is plenty of room still for growth. This impressive growth trend highlights a renewed investor appetite for UK commercial property following the uncertainty post the EU-Referendum. Furthermore, it is an indication that property investors are looking for long-term assured income; amid the wider slowdown of the commercial property market.

UK Specialized Property Investment Rise:  Four of the five specialist sectors saw investment volumes exceed last year’s figures.

  • Hotels: £5.5 billion invested into Hotel assets in 2017. Therefore over £2 billion more than the previous year.
  • Healthcare: £1.3 billion invested Healthcare property in 2017, almost £1 billion more than last year, therefore a 275% rise on the volume on 2016.
  • Student Property: £4.1 billion invested in 2017.
  • Private Rented Sector (PRS): £6.3 billion invested in 2017, the largest share of the specialist sectors.
  • Automotive: £0.5 billion invested in Automotive property in 2017.  A total of £3.4 billion in the last 10 years.

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International Property investors make up one-third of investment into the specialized UK property

The specialist property market is attracting international property investors. Overseas capital inflows equated to 33% of the specialist property market.  The major regions received the lions share of the capital; landing 66.2% of all specialist investment volumes. Shaun Roy, Head of Specialist Property Investment at Knight Frank said: “The appetite for specialist property investment is stronger than ever. We continue to see solid and sustained demand, driven by the desire from investors for durable long income investments with good covenants, resulting in record-breaking numbers, with £72.1 billion transacted in specialist property assets since 2006. “We expect this demand to continue despite the wider commercial property market potentially seeing a slowdown, with investment volumes forecast to reach almost £20 billion this year. “Named The Human Factor due to the specialist property market’s occupational demand, directly linked to individuals, the research demonstrates that the industry is less linked to the economic cycle than other commercial property sectors. This creates a compelling proposition for investors, who can expect more reliable returns from specialist property.”