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News Release

Bristol

Overseas investors still see UK as attractive destination, says JLL

Olly Paine reflects on the Bristol market


BRISTOL, 15th September 2016 – A recent survey of international investors’ attitude to UK property, undertaken by JLL, has found that 72% of overseas investors see the fall in sterling as an opportunity to invest in the UK.

Olly Paine27% of those surveyed said that it was an immediate opportunity, with 45% agreeing but planning to wait.

The survey was conducted amongst JLL’s global investor client base to gauge sentiment into UK commercial property post the EU referendum result.

63% of those surveyed are not planning on making any changes to their investment strategies until a new UK and EU relationship is drawn up, although a significant minority of 25% said that they would reduce allocations to the UK in the near term.

55% expected that while occupier demand may decrease as a result of Brexit in the short term, it will bounce back. 

Commenting on the findings, Olly Paine, director of capital markets for JLL in Bristol, said: “The survey shows that some investors are very much keeping their powder dry until we they see more details of a new agreement between the UK and the EU.

“Investment turnover has reduced in the immediate aftermath of the referendum, but we continue to see robust demand from private overseas investors in particular. Larger institutional investors are taking a more cautious approach and will need time to evaluate market sentiment. This will impact liquidity for larger lot sizes in the near term, but this bodes well for our regional markets where lot sizes are generally smaller.

“We are in the process of completing a number of sales for a major institution with a combined value of £35m and the demand has been very strong. With record low long term interest rates and the depreciation of the pound I expect this to continue.”