Direct investment in property assets in the South West of England is well above the 10-year average of deal value, according to a new study.

The findings, from property services company JLL, indicate that the total amount of capital invested in the South West increased by 35% to £1.3bn in the first nine months of 2022.

Domestically, deal values ​​for UK property assets rose to their highest level since before the Brexit referendum this year on the back of a strong first half, but volumes declined as economic worries were setting up.

JLL found that £40.4bn of capital was spent acquiring property in the first nine months of 2022.

Although this total is the highest since 2015, £29bn came in the first six months of the year, with third quarter volumes down 13% from the same period in 2021 and down 8% below the ten-year average for the third quarter.

More than half (52%) of asset buyers in the first nine months of the year were based overseas, with Asia-Pacific (16%) and the Americas (15%) accounting for the largest shares. more important. Both regions invested more in the UK than their 10-year averages (12% each).

On a country-by-country basis, the US (£5.4bn), Singapore (£1.9bn) and Australia (£1.9bn) were the top individual investors in value.

In the UK, offices accounted for the largest share of investment volumes at 37% of all deals in the third quarter of this year (£15.1bn), with the residential and industrial sectors both accounting for more than a fifth (21% each).

Oliver Paine, head of capital markets at JLL in Bristol, said: “The South West outperforms the South East, Central and Outer London and the Midlands for growth in long-term average deal values. This year. Domestic and foreign capital continued to be attracted by the region’s mix of high-growth sectors, from technology to professional services, and cities like Bristol which rebounded strongly from the pandemic.

Cameron Ramsey, UK Research and Strategy at JLL, added: “As our Transparency Index revealed earlier this year, the UK has several cities considered world leaders in data transparency. , regulations and performance benchmarks for international investors.

“This foundation means that large institutional investors, who have long-term horizons, will always view UK property investment as an essential part of their portfolios.”