Leeds has been dubbed the “best investment opportunity outside London” with around £30m having been ploughed into the city’s property market in just 18 months.
Accountancy and advisory firm Hentons claims the city is showing significant growth in retail and property investment, which will boost its appeal in the UK and overseas.
Middle Eastern investors in particular are becoming increasingly keen on Leeds as a place to invest their cash, with strong demand for student accommodation, with a weak pound and the increasingly high cost of real estate in London driving the trend.
Nadeem Ahmed, managing partner at Hentons said: “Leeds is seeing some significant developments with major office and retail schemes launching this year.
“These, plus longer term developments like HS2, are driving a spike in interest from investors.
“We are seeing overseas money moving into residential developments around the city core, aimed at students and young professionals.
“This is supplemented by some real opportunity in the office market, where Leeds is still poorly served in the serviced sector.”
The company has seen interest from the Middle East in residential investment opportunities across the city thanks to affordable land and buildings, with demand driven by a strong student lettings sector and a weak pound.
Mr Ahmed said: “The weak pound is making investing in the UK look very attractive, especially as the view is that it will rebound. And while the London market is expensive to enter and, as a result, offers investors slim returns, Leeds will continue to shine.”