Property investors are starting to look for opportunities across the UK as foreign money floods into bricks and mortar in the capital, property agent Knight Frank has said.
The company, which has a base in Colmore Row, said domestic demand was being spurred by improving conditions in the economy.
Businesses that had been putting off office moves to save money were also coming under pressure to relocate to grow, Knight Frank said, as it announced its annual financial results.
Profit before tax were up seven per cent to £102.7 million, with turnover increasing five per cent to £350 million, in the year to the end of March.
Alistair Elliott, Knight Frank’s senior partner and group chairman, said: “Foreign money dominates investment in London property, although UK funds are reviving their interest in the regions.”
Mr Elliott said the year had seen a strong recovery in appetite for commercial and residential property.
“The private rented sector continues to outperform and we expect this to continue over the next few years,” he added.
“On the commercial front, there is increased demand for office space from the technology and media sector as more businesses seek a collaborative working environment.
“Many companies have delayed relocating offices in recent years, to avoid the expense of a move.
“However, as current properties become obsolete, the pressure to relocate will grow, generating the next wave of occupier demand. Investors will want to capitalise on this increase in future occupier activity,” Mr Elliott said.