UK Commercial Property Still In Demand

The latest report by Jones Lang LaSalle suggests that UK direct commercial property investment totalled £6.6 billion in the second quarter of 2011. This is 24% lower than in the first quarter of this year and 11% than at the same time in 2010.

In the opinion of experts at Jones Lang LaSalle, the reason for such a sharp decrease is limited supply of prime commercial property and widening gap between London and other UK regions.

Commenting on the findings of Jones Lang LaSalle, Mr. Stassen of EMEA Capital Markets Research, said that "the dynamics of the Central London investment market remain unique compared to the rest of the UK. Investor activity in the capital in Q2 2011 amounted to almost 58 percent of the UK’s total volumes and is heavily skewed towards the office market."

Property specialists at Jones Lang LaSalle highlighted that the popularity of prime London property with foreign investors poses the risk of growing supply shortage, which is seen in all commercial property sectors.