Bristol is emerging as a key centre for property investment and development, according to a major piece of research.
Investors are being drawn to the city thanks to devolution of power from London through the City Deal and large planned infrastructure projects such as with the Temple Quarter Enterprise Zone, the latest Real Estate report by accountants Deloitte shows.
Its UK Key Cities report reveals that regional offices are emerging as a focus for savvy investors seeking higher returns. Bristol is among a new wave of cities recognising the need to stand apart from competing locations and bridge the gap between themselves and London.
The report comes as a spate of investment projects across the city and the wider region point to a tentative recovery in the property sector.
The region’s largest property agent, Jones Lang LaSalle, earlier this year forecast that Bristol would have one of the best-performing regional property sectors.
Deloitte’s regional head of real estate Martyn Gregory said: “We expect to see increasing activity in Bristol over the coming months with the potential for positive rental growth in some locations.
“Importantly, there are strong signals that there will be further investor interest in the city, with the enterprise zone at the heart of this growth in the upcoming years. It is encouraging to see the momentum that Bristol is taking in terms of infrastructure and governance and we believe this will provide a level of confidence to investors in the future performance of local real estate markets.”
Much of Bristol’s new economic strategies come from the City Deal scheme which is decentralising certain powers and resources from central Government, giving Bristol a greater ability to drive its own economic strategy and make decisions on investment and infrastructure.
Combined with the arrival of the city’s first elected mayor, this has given Bristol increased scope to set its own agenda to promote development and attract retail estate investment, said Mr Gregory.
The 70-hectare Temple Quarter Enterprise Zone, the city region’s flagship regeneration project, secured £20.8m from the Local Infrastructure Fund last autumn and Bristol City Council is now working up plans for 17 infrastructure projects in the zone.
Mr Gregory added: “Bristol will need to prove it is taking the responsibility of the City Deal scheme seriously and effectively. Like every other city granted this type of independence, Bristol must demonstrate the economic benefits of being able to take certain decisions at a local level. The success of the enterprise zone will be a key issue and a true test of how much impact the City Council, the Local Enterprise Partnership (LEP) and the elected mayor are having in attracting major investment and regeneration into the area. Property professionals will be watching with interest.”
Among recent enterprise zone projects announced is the £35m office development of Two Glass Wharf which sees 100,000 sq ft office space built within the next few months. Moreover, the delivery of an arena and the redevelopment of Temple Meads station will be a key catalyst to the regeneration of the city. Network Rail has already set aside £100m to redevelop the historic station with work set to start in 2016.
