Nov. 29 (Bloomberg) -- Almost 90 percent of U.K. fund managers expect the value of their real estate assets to increase in the next three to six months, up from 10 percent a year earlier, as the market outside London begins to recover.
“The huge upswing in confidence among fund managers in the past year is perhaps the most significant bellwether yet of the market’s recovery,” John Feeney, global head of corporate real estate at Lloyds Banking Group Plc, said in the statement. “The momentum is continuing to gather pace.”
Almost two-thirds of large businesses plan to increase their real estate investments by mid-2014, a survey by Lloyds of 500 property industry professionals found. Positive sentiment in the wider real estate industry is at its highest since Lloyds started doing the survey in 2010.
U.K. commercial real estate values rose for the sixth straight month in October as the economic recovery gained pace, Investment Property Databank Ltd. said in a Nov. 14 report. London, Manchester and Birmingham are the three U.K. investment locations most favored by investors over the next six to 12 months, according to the survey.
Scotland had the biggest turnaround in confidence, with 90 percent of those surveyed expecting an increase in market activity in the next three to six months, compared with 9 percent a year earlier, Lloyds said.
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