U.K. commercial investment volumes reached £4.7 billion ($5.9 billion) in March 2024, the highest level since March 2023 and a 56 percent increase month on month, according to Savills. This resulted in first quarter investment volumes for commercial property to reach £10.7 billion ($13.5 billion), and is the second quarter in a row with rising volumes.
In its latest Market in Minutes report, Savills says that markets are expecting inward yield movements this year, which should stimulate higher investment volumes in the second half of the year. Retail warehouse, industrial, distribution and London-leased hotels segments all saw inward movement of yields in April 2024, meaning average prime yield now stands at 6.05 percent, an inward movement of 13 basis points since the start of the year.
