Dawn of the ‘Severn Powerhouse’
South West property investment almost doubles to £500m in Q1 2015
South West commercial property investment transactions almost doubled to circa £500million during the first quarter of 2015 compared to Q1 2014, according to Colliers International estimates.
Colliers cited UK institutional investment as a key contributor with half of all transactions (£250m), but property companies weighed in significantly (£133m) suggesting asset development and re-development has played an important role.
The South West it is likely to top last year’s £2bn transaction volume and possibly approach the £2.5bn peak reached in 2005, should it maintain the pace set in the first quarter of this year.
Outside of London and the South East, the South West and North West are the only regions to see year-on-year increases in quarterly activity. These regions are increasingly ‘on the radar’ as central government continues to push regional development, according to Colliers International Director of Research and Forecasting, Dr Walter Boettcher.
Boettcher explained, “The ‘Severn’ Powerhouse, like the Northern Powerhouse, may be set to come into its own as institutions and other investors begin to look for development and infrastructure investment opportunities outside London and the South East.”
Richard Coombs, Director of National Investment at Colliers International’s Bristol office, commented, “With several sizeable deals already in the works, and undiminished expressions of interest in Bristol and the South West, 2015 is set to be another strong year with both the rental market and investment market seeing substantial growth.
“Reassuringly, interest in creating new high quality property assets seems to be on the agenda for several developers and property companies, assuring the South West of sufficient space to accommodate a strengthening economy.”