RSM survey reveals overseas property investment boom is far from over...

Overseas investment into the UK property market is on the rise according to a survey carried out by RSM amongst decision makers in the real estate sector.

Nearly three-quarters of respondents (72 per cent) said that the growth in overseas investment was inevitable, with 62 per cent saying they believed that it was essential to the growth of the UK commercial property sector.

45 per cent of respondents expressed some concern, saying they believed that ongoing investment by overseas investors would continue to push prices up, and a fifth said they thought that overseas investors were taking valuable opportunities away from investors in the UK.

Howard Freedman, RSM’s UK Head of Real Estate and Construction, said:

‘There is genuine concern amongst the real-estate community about the enormous amount of capital coming into the UK from overseas investors, and that this trend sees no sign of abating. Clearly this will come as a blow to UK businesses as post-recession, they start to look to grow and expand against a rising tide of property prices.

‘There is a concern that if large amounts of investment continue to pour in from overseas and cause pressure on property values, then we may see a ‘bubble’ developing, which could ultimately have a long-term detrimental effect on the UK property sector.’