Investment in South West property holds against headwinds, finds JLL
Investment in the South West’s real estate market has held steady despite dips in the long-term average seen elsewhere across the country, according to research from global property adviser JLL.
JLL’s research showed the region’s property sector attracted £565 million of investment in the first half of 2024.
Though this represents a three per cent fall in the 10-year average, it still outperformed the 25 per cent average decline seen nationally, and 46 per cent in central London.
Oliver Paine, head of capital markets for UK regions at JLL, said: “With Bristol as its focal point and strong clusters that will be crucial to the net zero drive, it’s not massively surprising to see the South West maintain its position as an attractive hub for investment.
“That’s evidenced in our own pipeline of work, where investment flows look likely to remain strong going into next year.
“It’s heartening to see the South West continue to show its resilience.
“Stability in policy, proposed changes to the planning system to make building less onerous and optimism that interest rates will continue to fall, albeit slowly, means many will be eyeing the second half of the year as an opportune time for investment.
“Those factors will, in turn, be crucial in driving the economic growth the new government is aiming for.”
JLL’s research showed investment in the country’s property sector reached £16.2 billion in the past six months, down on the 10-year average of £21.5 billion but in line with figures seen in the first half of 2023.
Although headline volumes remained a little subdued throughout the first half of the year, overall volumes including M&A, land and development investment increased 12 per cent year on year to £22.6 billion.
The data also shows international investors remaining active in the UK, accounting for 52 per cent of the total for the past half year.
The living sector, which includes all segments of the residential market including student accommodation and retirement homes, attracted the largest proportion of investment for the third quarter running at £4.8 billion – a 30 per cent market share.
