Overseas property investors to boost UK property
Britain is likely to remain an attractive proposition to property investors around the world this year, analysts have predicted.
According to Deloitte, foreign investors are likely to put more than £20 billion into commercial and residential real estate in the UK throughout 2013. This, it said, is higher than the amount recorded last year.
Andy Rothery, head of Deloitte Real Estate, noted that many of those who will be "established players" in the country's property market.
However, he believes Britain is likely to become more and more popular with "new entrants" as well over the next 12 months.
This, he said, is partly because the country is widely regarded to be a fairly safe and secure option at the moment.
"Many overseas investors are looking for stable, income producing assets with bond-like characteristics," Mr Rothery commented.
"The UK is well placed to meet such needs and we expect that the appeal of the real estate to overseas capital will remain."
Deloitte pointed out that the country's commercial property market in particular has been hit by ongoing economic turmoil, both domestically and overseas, over the last few years.
However, the organisation is confident the sector will bottom out this year, with signs of recovery starting to emerge towards the end of 2012.
The group said this will halt the downward trend in commercial property values, while investors are set to look beyond established core prime markets in order to find good opportunities elsewhere.
Anthony Duggan, head of real estate research at Deloitte, acknowledged that some may view the group's expectation of the market bottoming out in 2013 as "heroic" in light of continuing problems in the economy.
"But we believe there are enough compelling reasons to support the idea," he said.
Mr Duggan added that technological advances such as the emergence of cloud computing and bring-your-own-device schemes are fuelling changes in office occupier requirements at the moment.