Overseas investors increasing market share - commercial mortgages

22 November 2007

Overseas property investors now own one in every three commercial properties in Britain, according to to a new report from Royal & Sun Alliance.

The study has revealed that investment in commercial property in the UK has grown by a third since the turn of the century, with the total value of the sector now standing at £741 billion - an increase of 20 per cent in the last seven years.

Such trends have likely brought with them in increase in the number of commercial mortgages being taken out, with overseas investors now owning approximately a quarter of all commercial buildings.

But this share may now fall as the market begins to soften, even though the insurer''s report predicts that the sector will remain healthy in the long-term.

The south-east and London were found to be the most popular regions for foreign investment, echoing a recent report which found London to be the most popular European city in terms of demand for commercial property. Manchester and Birmingham are also witnessing high levels of foreign interest, according to the Royal & Sun Alliance research.