Investors continue to look to the West Midlands

Investors continue to look to the West Midlands

Investment in commercial property across the West Midlands got off to a promising start in the first quarter of 2016, according to new research by Lambert Smith Hampton (LSH).

The latest edition of the company’s quarterly UK Investment Trends (UKIT) report reveals that investment totalled £0.96bn during the first quarter, almost double the five-year average. Total activity across the UK during the period totalled £11.7bn.

Across the region, the office sector accounted for 17% of the total volume invested at £159m, while retail account for 54% of transactions with £521.95m of acquisitions – much of which can be attributed to the purchase of the recently launched Grand Central shopping centre in January.

Industrial transactions stood at £185.75m (19%), while £88.52m worth of transactions were recorded in other sectors.

Adam Ramshaw, head of Birmingham and East Midlands at LSH, said: “Q1 has been a hugely positive one for investment in the West Midlands." 

The research also found that appetite remains strong for regional property assets across the rest of the UK, with £4.5bn invested outside of London during the quarter - 6% above the five-year average. 

Conversely, investment in the capital was significantly down on the five-year average, meaning that figures for the UK as a whole are at the lowest quarterly total for almost three years. 

Ezra Nahome, CEO of Lambert Smith Hampton, believes the national figures, driven by a reduction in purchases by overseas buyers, are a result of uncertainty around Britain’s membership of the EU.