The U.K. property sector is expected to attract a record approximately $182 billion of investor commitments out of at least $1.5 trillion of new capital set to be poured into global real estate over the coming years, according to commercial real estate services firm Jones Lang LaSalle Inc.
Certain factors, such as transparency, liquidity, lucrative pricing compared with other developed markets, robust occupational markets and its reputation as a hub for talent and innovation make the U.K. an attractive investment market, according to the report.
The London property market alone is set to receive more than $80 billion of new capital, but a shortage of supply is holding back investors, JLL added.
Despite a continued increase in the popularity of the property sector, U.K. deal volumes for the first nine months of 2019 declined about 27% year over year to £32.5 billion, JLL said. The firm blamed a shortage of available stock because of a mismatch in pricing expectations between buyers and sellers for the drop.
Once the U.K. general election is over, JLL expects investors to have more clarity about the country's political and economic trajectory over the next five years, which the firm said will result in more capital committed to the U.K., especially London.