Bristol has attracted over £3.5bn of commercial property investment over the past 10 years, according to a new report published by leading property advisers CBRE.
Core Cities, Core Strengths, analysed 12 of the major regional cities outside of London across the UK, with Bristol coming 6th in the rankings behind Manchester (£8.2bn), Birmingham (£6.5bn), Glasgow (£5.3bn), Edinburgh (£4.9bn) and Leeds (£3.7bn) for total commercial property investment in the last decade. However, Bristol features third in the rankings when it comes to total industrial investment (£501m), behind only Aberdeen (£603m) and Birmingham (£541m).
CBRE’s report address the key indicators for a city’s success: civic leadership, talent in growing sectors, quality of life and ‘placemaking’, and infrastructure, providing a detailed review of the main city property markets outside London, and the opportunities and risks of devolution. It also includes ‘softer’ indicators such as the number of 5 star hotels or Michelin star restaurants.
Andrew Sayner, Head of Investment at the Bristol office of CBRE, said: “Bristol has once again proved itself as the Gateway to the South West, with high levels of demand coupled with limited supply, forcing growth to come through in commercial properties throughout the city.”
In total, the regions beyond London and the South East account for almost 60% of all UK commercial real estate transactions. The findings show that investors have diversified their property holdings as part of the recent economic recovery, with emerging investment sectors such as healthcare and student housing increasing their share of the market.
Pre-financial crisis, these assets accounted for 3% of investment; this has trebled to around 10% of total investment volumes today. Overseas investment into the regions has also reached its highest level since 2007, with double the amount of investment in 2015 compared with 2013.
Miles Gibson, Head of UK Research at CBRE, said: “The UK’s core cities face an unprecedented opportunity. Whatever the relative position of individual cities, the ongoing economic recovery provides an opportunity for them all to maximise the hand that they have been dealt and, in some cases, the legacy they have to deal with.
“Volumes of international investment into the UK are now so significant that even London is struggling to absorb it all. The UK’s core cities have a unique chance to capitalise on the world’s current desire to have exposure to Britain and its property market. It is crucial for the continued success of the UK as a whole that they take it.”
