A SHORTAGE of stock is hampering activity in Yorkshire’s commercial property market, it is claimed.
Property agent DTZ’s latest UK Investment Market Update showed total direct commercial real estate investment across the country totalled £8.4bn in the second quarter of 2012 – up by 21% on the previous quarter. But, the rolling four quarter total remained broadly flat at £30bn.
Although activity in regional markets remained relatively subdued, there were pockets of growth – notably in the West Midlands, where quarterly volumes reached £460m, a figure well above the longer run quarterly average of £380m.
The update said the UK regional office markets appear to be suffering from growing “risk aversion” and concerns over the weakness of occupational markets.
Tim Cameron-Jones, senior director at DTZ in Leeds, said: “Investment into commercial property in the Yorkshire region is subdued at the moment. This is partly driven by scarcity of prime sales, but also by general caution from investors.
“Whilst we do not expect the return of significant rental growth in the short to medium-term, property investment currently offers very attractive income returns in comparison to other asset classes and as we saw from investors who bought wisely when the market stalled in 2009, very significant returns can be made on the bounce back.”
Ben Burston, head of UK DTZ Research, said: “Looking forward, we expect investment volumes in the UK to reach £34bn this year, a 13% increase on 2011.”