UK Cities outside London attracting Middle East investorsadmin
For the first time, in 2019, properties in regional cities in the UK such as Birmingham, Liverpool, Manchester, Edinburgh and Glasgow attracted greater investment from the Middle East than Central London according to CBRE, the Global Real Estate Adviser.
While £650m was committed to invest in Central London, this was outdone by more than 35% as £880m was invested in to UK regions.
While last year saw iconic buildings purchased in Birmingham, Liverpool and Bristol by Middle Eastern investors, some investors from the region disposed of Central London assets, such as 25 Canada Square, the Citibank head office. Approximately £6bn has been invested in property assets in the UK regional cities across the last five years, however, 2019 was the first time investment in these areas exceeded the investment spend in London.
With intense infrastructure and economic development taking place in many regional cities across the UK, the potential for growth increases, while yields outside the capital have been more attractive that London for a few years now.
More than one third of landlords voted for Manchester as the top place to invest with long term rental yields at 6.5% compared to 4.5% in London, providing a very attractive environment for investors. There are many factors to suggest it is a burgeoning city likely to see increased growth and demand from it’s flourishing media scene and vast student population to the £1bn redevelopment of Manchester airport and growing corporate development.
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