Investment in commercial property across the West Midlands was up in the final quarter of 2017 and above the five-year average, national commercial property consultancy Lambert Smith Hampton (LSH) has revealed.
LSH’s UK Investment Transactions (UKIT) report shows that in Q4 investment in the region stood at just over £1bn, against a five-year average of just over £0.6bn.
The findings of the UKIT report were revealed at a property event in Birmingham, where experts heard that the city’s success reflects equally strong investment performance across the country.
Adam Ramshaw, head of LSH Birmingham and East Midlands, said: “An intriguing year lies ahead for real estate across the West Midlands, one characterised by both risk aversion and clear pockets of opportunity.”
The UKIT report reveals that total investment volume in the regions outside London was £7.0bn in Q4, the second strongest quarter on record, behind Q4 2006. It brings the annual total for 2017 to £20.9bn, its best year since 2006.
Across the national industrial sector, 2017 ended with a flourish, with the Q4 volume of £16.5bn being the highest since Q2 2015. It pushed the annual total to £58.8bn, which is up 25% on 2016 and 38% above the ten-year annual average.
The report also showed that regional offices volume of £1.5bn was particularly strong in Q4, almost double the quarterly average.
Ezra Nahome, CEO of LSH, said: “Judging by the tremendous finish to 2017, the market is clearly taking all the political noise and uncertainty firmly in its stride. The emphatic return of domestic investors also confirms that there is far more to UK property investment than a mere currency play in London.
“2017 was more than just a good year for some parts of the market. A number of UK regions saw record activity, while investment into industrial and the specialist sectors climbed to new highs, a clear reflection of investor focus on structural change and secure income.”