Leeds Growing More Attractive to Foreign Property Investors
2 April 2013
Leeds could become an increasingly attractive investment opportunity to wealthy overseas property investors who are being priced out of London, according to Deloitte Real Estate.
The new UK Key Cities publication from Deloitte Real Estate explores the trend that regional offices are emerging as a focus for savvy investors seeking higher returns.
Alex McCallion, of Deloitte Real Estate in Leeds, said: “Leeds is amongst several key UK cities that have recognised the need to stand apart from competing locations and bridge the gap between themselves and London.
“Overseas investors could be attracted to the city if they have been priced out of the London market, which could be a short/medium-term route to energising the market in Leeds.
“The pent up demand for A-grade space combined with the opening of Trinity and the development of the new arena mean Leeds is certain to catch the eye of investors looking for development opportunities outside the capital.
“Generally, regional activity is being bolstered by factors such as improved connectivity through large planned infrastructure projects, devolution of power, and investment into the retail and leisure market.
“Until now we’ve seen these institutions cutting their teeth in London, and we now expect to see them beginning to pursue opportunities in the regions where there is the potential for higher income yields.”
Market conditions and future changes in key cities across the UK are studied in the report which suggests that occupational demand for offices will be mainly from the professional and administrative sectors with active demand from the legal sectors in the regions. Employment growth is expected to be slow during this year but return to stronger levels of growth in future years.
The report also explores the new powers gained by cities under the City Deals scheme. Leeds has joined Liverpool, Bristol, Newcastle and Birmingham in agreeing a form of devolution in exchange for an offer to improve outcomes and efficiency. The agreement with the government allows a city to drive its own economic strategy and make decisions in infrastructure and investment.
McCallion adds: “Importantly, there are strong signals that there will be further investor interest in the regional office markets this year with both domestic and overseas investors looking outside London for their returns.
“Leeds has momentum in terms of infrastructure and governance and we believe that this will provide a level of confidence to investors in the future performance of the real estate market here.”
Notes to editors:
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The information contained in this press release is correct at the time of going to press.
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