As various reports suggest that commercial markets around the world are beginning to see an upturn in activity, Jones Lang LaSalle (JLL) has revealed that direct commercial real estate investment in the UK reached GBP 8 billion in the first three months of 2011.
The figure represents a 41 per cent increase on the same period last year and suggests that buyers are becoming increasingly confident about the market's prospects.
According to the firm, the UK remains the largest investment market in Europe, the Middle East and Africa (MENA). Transactions were particularly focused on the Central London office sector due to its safe haven status.
"Investor focus very much remains on Central London and the South East markets," said Damian Corbett, head of UK Capital Markets at JLL. "We are continuing to see huge demand from overseas investors for large prime assets with strong covenants, with particularly aggressive bidding on good income product within the City offices market."
JLL recently forecast that some USD 440 billion is expected to be transacted across global real estate markets this year.