Third of commercial property foreign owned

As many as one in three British commercial properties are foreign owned, new research has revealed.

According to figures published by Royal & Sun Alliance, 22 per cent of business real estate is owned directly by overseas parties and a further ten per cent owned indirectly through funds. An additional one per cent is held by overseas companies with a UK presence.

In 2000 just 15 per cent of UK commercial property was foreign controlled but a boom in the market helped the figure double in just seven years.

And the trend is set to continue, with Royal & Sun Alliance claiming that the sector will continue its strong investment in the long term, but may suffer a dip in the short term due to the effects of the US subprime mortgage crisis.

Research by Savills has revealed that demand for property in the M25 area near west London is set to increase, with rents likely to rise by around 6.1 per cent.

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