The average property prime yield remained stable at 4.87% in
June 2019, according to real estate advisor Savills.
Despite
underlying headwinds in the market, the average yield had only shifted slightly
since the end of April from 4.83%.
In the first half of 2019, £17.3b was invested in UK commercial
real estate with 42% coming from overseas investments, close to the 46% average
seen over the last three years.
Research conducted by Savills shows the investment share into
the UK from Middle Eastern and US sources was higher in H1 2019 than the
historic average.
Savills joint head of UK investments, James Gulliford, said: “UK
commercial property has remained attractive for investors both international
and domestic despite on-going discussions over the UK’s relationship with
Europe. It is difficult to predict what will happen in H2, however there may be
significant opportunities for developers and those looking t capitalise on a
currency play.”
“While some sectors are showing indications that yields
may soften, others remain resilient; in particular rental growth prospects in a
number of regional office markets which continue to offer good value”