Published by the Estates Gazette 20.04.26
The UK has long been seen as a ‘safe haven’ for capital at times of global disruption. As the conflicts in the Ukraine and Middle East continue, Richard Auterac looks at how auctions are becoming more internationalised as overseas capital increasingly targets the UK.
In 2011, we saw a vivid example of how troubles beyond the UK spark an influx of 0verseas capital. That year, the Irish economy was working under the constraints of a €85bn European Union/IMF bailout package and Greece was in the middle of a debt crisis which would bring the country to the verge of bankruptcy.
So, given the fact that the UK’s relative stability, legal system and market transparency has perennially made a preferred destination for property investors looking to ‘safe haven’ their capital, it is perhaps not surprising that the Acuitus records for 2011 show a substantial influx of Greek and Irish buyers at our sales.
Fast forward to the present and it’s fair to say that renewed positive sentiment about the UK property was already seeing growing overseas investment prior to the escalation of conflict in the Middle East. In 2025, capital from outside the UK accounted for more than half of around £60bn of investment into this country’s commercial real estate. Last year, saw the amount of spending at commercial auctions being similarly progressive with close to £1bn of sales completed and the proportion of this committed by overseas investors – whilst still relatively modest – began to grow.
Analysis of the country of origin of those people who registered to bid for properties at Acuitus auctions shows that since the beginning of this year, we have attracted registered bidders from 16 different countries including Canada, China, Germany, Israel, South Africa, Spain and the USA. There’s has also been an uptick in registrations on our website from the UAE and we expect this to increase unless some reconciliation can be found between the US and Iran.
In terms of what these assets these investors are targeting there generally is a distinct difference with the preferences of our domestic buyers. Many UK buyers are currently looking for properties that have asset management potential and that they can ‘work’ to increase income. In contrast, the international investors who have been successful bidders at our auctions recently have tended towards ‘drier’ assets which are in strong locations and require minimal management.
A good example of an overseas purchase from our February auction catalogue was a prime retail investment in the centre of Winchester. The combination of a cathedral city location with footfall underpinned by tourist visitors plus an attractive unit let to a jeweller who had been in occupation for more than a decade saw the lot sell prior for well in excess of its £1.5m guide price.
Similarly, we sold the freehold interest in the Torquay and Newton Abbot County Court for £1.25m to an international investor. In this instance, it was clear that the fact the asset was let to The Secretary of State for Communities and Local Government and therefore provided highly secure income was attractive to the buyer.
Given that they are in a different country and most likely do not have the active asset management resource that domestic purchasers may have, international investors are often content with an existing income stream and the enhancements that upcoming rent reviews or index-linked leases can bring.
In this respect, their primary competition from UK investors will be the high net-worth investors who are looking for long-term, secure income from ground rent interests or ‘alternative’ assets. The latter encompass leisure properties, healthcare facilities, drive-thru restaurants and trade counters/builders’ merchants which are often let on leases of greater length than the mainstream offices, retail and industrial sectors.
For sellers looking to recycle capital from existing UK ownerships, the growing interest of international buyers is a positive trend.
The ‘safe haven’ lens through which many overseas investors view the UK means that they will be attracted to assets which have been well-managed, and the auction contract offers them a speedy and effective solution to finding a secure home for their capital.
While continued global conflict is a sombre backdrop to this trend, the increased interest that overseas investors have in our country’s commercial property sector looks set to further bolster demand as the market moves forward again aided by the global reach of the auction online marketplace.
