LONDON—In the most mature and largest UK and European markets, prime properties in the regional cities have seen a surge in demand, according to a June report from Savills.
The demand is coming increasingly (and particularly in the case of Germany), from cross-border buyers. Prime yields in London (4.5%), Munich (4.25%) and Frankfurt (4.5%) are at historically low levels, the report notes. So well-established regional economic centers may be a good investment alternative.
There is a clear increase in activity year-on-year: the total transaction volume increased by 91% in
Manchester and 76% in Birmingham, while office investment jumped by 150% in Dusseldorf, 130% in Hamburg and still 93% in Munich.
Meanwhile, in smaller markets there is limited foreign buyer interest in secondary assets and/or regional locations. Savills says this is especially the case in Belgium, but also in centralist France, where 30% of GDP is generated in the Ile-de-France.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
