According to the Telegraph, London has been overtaken by Birmingham as the UK’s most attractive city for property investment.
Overseas investors searching out bargains
It has taken a while, but property investment in the UK is starting to thrive again following the banking crisis in 2009.
And this year, more Asian and American funds will buy Britain’s buildings, but not in London. A recent report from PwC and the Urban Land Institute revealed a shortage of available assets and high price tags on office buildings, residential blocks and retail outlets in cities like the capital, has driven investors to look elsewhere.
Birmingham, seen as the UK’s second city, is being targeted by overseas investors seeking a bargain.
The West Midlands city jumped a massive 14 places in the report’s index, whilst the UK’s capital slipped from 5th to 10th. Birmingham is currently undergoing a massive city centre regeneration and will also house the new HS2 headquarters.
Berlin predicted to offer cheapest property in 2015
In the report, German capital Berlin topped the index with analysts predicting that the city will be the most popular with investors.
The top ten cities from the report are listed below:
|2015 Ranking||2014 Ranking||Change|
Dublin, a non-mover from 2014, is second in the report ahead of Spanish capital Madrid, which moved up 16 places. However, the biggest mover was Athens, which climbed from 28th to 5th.
Amsterdam and Lisbon also experienced positive moves up the table.
Confidence returning to the market
Lisette Van Doorn, Chief Executive of the Urban Land Institute’s European Operation, said:
“As confidence has returned to global real estate markets over recent years, there has been a progressive movement up the risk curve.
“Investors have found prime assets expensive and hard to source, and have in turn looked to find new opportunities in recovering secondary cities.”
“Real estate investors – armed with capital from sovereign wealth funds and pension funds from Asia and North America – are moving into less competitive environments.”
A perfect example of why HS2 is needed
Commercial and residential development consultant Richard Carr believes that the report is great news for the country and smashes Labour’s theory that the economy is London centric; it also proves the need for the HS2 system.
Richard added that the UK is on its way to becoming the Hong Kong of Europe; the powerhouse. With this wealth creation our standard of living and all of our lives will improve, however we still need to ensure the socialists are kept out of power!