New research has revealed specialist sector investment is set to reach £14.3 billion by the end of 2016.

According to a new report by Knight Frank, total investment in the sector will increase 10% year-on-year.

In 2015, 18.3% of all commercial property investment transactions were in specialist property, with large levels of inward overseas capital accounting for an average of 62% of all transactions.

In addition, the hotels, healthcare, student property and automotive sectors saw volumes exceed their five and ten year averages.


Overall, £46.6bn has been invested in these sectors since 2006, with £13bn invested in 2015 alone.

Shaun Roy, Head of Specialist Property Investment at Knight Frank, said: "The market has changed. Investors primary focus now is the longevity and durability of their income return and the specialist sectors are ideally suited to offer this style of investment product to the market."

Lee Elliott, Head of Commercial Research, Knight Frank added: "The momentum that has built within the specialist property sectors will be maintained. Despite emerging headwinds such as the EU Referendum and the operational effects of the National Living Wage, the inherent qualities and drivers of these sectors will be alluring to a broad array of investors."

(LM)