International investors have long been dominating the headlines with regards to the UK real estate investment market and my recent travels have only reaffirmed the continued level of appetite for UK assets.
As we pass the end of the first quarter, there is a sense of cautious optimism in the global real estate market, driven by better-than-expected economic growth and robust occupier fundamentals.
Recently, in the same week that Japan’s biggest bank, Mitsubishi UFJ Financial, announced it was creating 180 new investment banking jobs in London in the hope of boosting income outside Japan, Westfield revealed its plans to open Europe’s largest Japanese food hall at its west London shopping centre.
The end of H1 typically marks the start of the summer recess, but this year it seems the UK and European real estate markets do not want to take the traditional break. Global capital remains extremely active with domestic and global investors undeterred by continuing political instability.
The month of March, dominated by Mipim, tends to act as the annual barometer of the property market, a bellwether of sentiment for the rest of the year. However, can we extend this analogy to incorporate the entire property cycle?
What challenges await our real estate markets this year? I am not sure we can beat last year for obstacles, but despite everything, the market has remained positive.
I would argue that interest from overseas buyers remains unabated in London and throughout the UK across a variety of sectors since the EU referendum.
Think back to 2009, when London first raised its head above the global real estate parapet.
Property Week News, analysis, insight and events for UK property professionals