Total commercial real estate investment in the UK reached £44.7 bn (€52.6 bn) over the first 10 months of 2021 and is on course to hit £50 bn (€58.8 bn) for the full year, according to Savills.
The 10-month figure is up by 15% on the same point in 2019 and 29% higher than 2020 levels, the adviser says in its November Commercial Market in Minutes report.
The UK industrial and alternative sectors are set to do particularly well, with full-year investment exceeding both the five and 10-year averages. The industrial sector has seen transaction volumes reach £12.8 bn in the year to date, already exceeding the long-term annual average by 97%, says Savills.
James Gulliford, joint head of UK investment at Savills, said: ‘The final quarter of the year is traditionally the most active for investors, and with pent-up demand finally having been unleashed in the second half of this year we’re expecting a lot of yield movement in the final couple of months.
‘We said last month that we expect total UK volumes will hit £50 bn (€58.8 bn) by the end of 2021, and we’re seeing nothing in the current figures that has made us re-think that position.’