Record £400m invested in Cardiff commercial property last year
Investment in Cardiff's commercial property sector reached record levels in 2017, at more than £400m ($542m), compared with £298m in 2016, according to Savills. Ross Griffin, director of investment at Savills Cardiff, said the figure was boosted by the £224.7m invested in the Central Square regeneration scheme. The data also revealed total investment in the office sector reached £350m, while prime yields for office investments dropped 75 basis points to 5.50%.

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Investment into Cardiff's commercial property sector reached record levels in 2017 at more than £400m, according to international real estate advisory firm Savills.

In 2016 investment into the city totalled £298m.

The research by Savills shows that volumes were heavily skewed this year by the activity at the Central Square regeneration scheme, which amounted to a combined £224.7m.

In total, investment into the Cardiff office sector surpassed £350m, which represents a record high.

Prime yields for Cardiff office investments fall 75 basis points from the beginning of the year to 5.50% as strong investor interest has resulted in downward pressure.

The second largest sector in terms of investment levels in 2017 was the leisure sector with investment reaching £43m.

The sector was dominated by the £20.5m acquisition of Stadium Plaza by Naissance Capital Real Estate and the £22.1m purchase of the Clayton hotel by M&G Real Estate.

Ross Griffin, director of investment at Savills Cardiff, said: “Cardiff remains a popular investment destination, particularly for those looking to place their money into the regional office market.

The development at Central Square has significantly boosted the volumes for this year, providing an attractive opportunity.

"Looking ahead to 2018 we expect to see continued activity from institutions on both the buy and sell side as they look for long term income. Overseas capital will also be active, particularly for prime assets at attractive yields."