SOUTHAMPTON has received more than a £3.1 billion worth of commercial property investment over the last decade according to a new report.

Core Cities, Core Strengths, a new research report from global property adviser, CBRE has calculated that investment in Southampton over the last ten years equates to £3,517 per capita putting it ahead of the likes of Birmingham, Liverpool and Nottingham CBRE’s report, the first of its kind to compile this level of detail, analyses 12 regional cities.

Key indicators for a city’s success: civic leadership, talent in growing sectors, quality of life and ‘placemaking’, and infrastructure. It also includes ‘softer’ indicators such as the number of five star hotels or Michelin starred restaurants.

James Brounger, managing director of CBRE’s Southampton office, said: “While Southampton is one of the smaller cities analysed in the report, the investment per capita shows that it can compete with some of the UK’s larger destinations. Looking forward, prime rent growth is forecast to be 4.7 per cent over the next five years, a key indicator that Southampton is now catching up with other regional cities.”

In total, the regions beyond London and the South East account for almost 60 per cent of all UK commercial real estate transactions.

The findings show that investors have diversified their property holdings as part of the recent economic recovery with emerging investment sectors such as healthcare and student housing increasing their share of the market.

Pre-financial crisis, these assets accounted for three per cent of investment; this has risen to around 10 per cent of total investment volumes today, says the report.

Miles Gibson, head of UK Research at CBRE, said: “The UK’s core cities face an unprecedented opportunity. Whatever the relative position of individual cities, the ongoing economic recovery provides an opportunity for them all to maximise the hand that they have been dealt and, in some cases, the legacy they have to deal with.

“Volumes of international investment are now so significant that even London is struggling to absorb it all. The UK’s core cities have a unique chance to capitalise on the world’s current desire to have exposure to Britain and its property market. It is crucial for the continued success of the UK as a whole that they take it.”

Reacting to the report Stewart Dunn, chief Executive of Hampshire Chamber of Commerce, said: “The recent CBRE report supports the hard evidence that we have seen in the city over the last two year of ‘cranes in the sky’ changing the skyline of Southampton and in doing so making the City even more commercially competitive. We should however not be complacent and recognise that there remains a shortage of modern office accommodation to meet growing demands and expectations of firms wishing to remain or move into the city.”

The report coincides with news Southampton’s Red Funnel ferry terminal is set be relocated to the Trafalgar Dock as the first phase of the £450m Royal Pier redevelopment. This will free up the site for a wider complex to include 730 homes, 50 shops, bars and restaurants, a hotel, casino, 47,000 sqm of office space and an art and culture “hub”..

Tonight (Tuesday) city councillors are due to meet to decide whether to approve the scheme.