Investment volumes in commercial property in the north-west of England increased significantly during the third quarter (Q3) of 2011, compared to the previous three-month period, it has been revealed. Research released by Lambert Smith Hampton (LSH) found that the amount of money ploughed into the sector jumped by 158 per cent during this time. Reporting on the data, the Manchester Evening News noted that many of the biggest deals took place in Manchester, indicating that the city is doing well despite challenging market conditions.
Meanwhile, marketing manager at Officebroker Simon Jones commented that the serviced office industry in the region has improved significantly so far in 2011. "The number of new clients entering the serviced space in the north-west increased by 34 per cent this year; and when comparing Q3 2011 with Q3 2010, placements were up by 46 per cent," he stated. Northern head of capital markets at LSH in Manchester Abid Jaffry noted: "The investment market is still continuing to demonstrate an enthusiasm to acquire appropriate opportunities."
However, more could be done to help this cash flow into other parts of the region. In a recent interview with The Business Desk, Ian Barker from Berg Solicitors stressed the importance of being able to attract investment from abroad. He also highlighted the need for the area to be viewed as "a cohesive whole". He stated: "Improving cooperation between our towns and cities would support [the] development of the region." This could involve marketing plans that showcase the potential across the north-west, with Mr Barker adding that he believes the property sector in this part of the country is the strongest in the UK outside of London.
It seems that overseas investors are beginning to recognise the investment opportunities in the north-west, with the LSH figures showing that just under one-third of all transactions completed in the third quarter of 2011 were carried out by international investors. Therefore, it appears the key is in maintaining this interest and encouraging further growth within the industry.