Shawbrook’s internal data indicates a 102% year-on-year rise in lending for commercial property purchases from 2023 to 2024.
The South East was a focal point for this growth, accounting for 30% of total commercial purchase lending.
This region’s popularity with investors was attributed to its robust transport links, steady economic growth, and high demand for commercial space.
Shawbrook’s data also reflected a shift in investor strategy, with semi-commercial applications rising from 13% in 2023 to 24% in 2024, highlighting a movement towards high-yield asset classes.
To support this demand, Shawbrook enhanced its commercial investment products and increased the maximum loan-to-values (LTVs) for retail, healthcare, education, and industrial assets.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “The commercial property market is recovering after a turbulent period, with several sectors showing renewed signs of growth.
“Investors are keen to expand and diversify their portfolios with high-yield, high-income properties like commercial, semi-commercial, and HMOs.
“These assets not only offer potentially higher returns, but diversification can also help to build resilient portfolios even in uncertain markets.
Norkett added: “However, investors should conduct thorough research, as risk profiles can vary significantly across regions and asset types.
“Speaking with a specialist commercial broker can provide invaluable guidance on the best options available.”
