The total investment in the office space in Central London in the UK in 2016 is likely to cross £17 billion, said international real estate advisor Savills in its latest issue. This puts to rest speculations regarding uncertainty in the UK property market in the wake of UK referendum on exiting the EU.
The long-term average investment in Central London office space is £14.4 billion while 2015 saw the highest inflow at £19.4 billion. Taking into consideration the developments last year, the inflow of investment into Central London can be considered as a record. It means investors continue to show faith in the London property market, as its fundamentals are strong.
Asian investors had a big role in increasing the investment volume in the office space and they accounted for £4.5 billion in 2016. This can be attributed to the currency shift following Brexit, thereby making investments in the UK an advantage for overseas investors. “Prime yields ranging between 3-6%, commercial property continues to be an attractive asset class for investors,” Savills said indicating that the return on investment continues to remain attractive for investors.
According to international real estate advisor Savills, Central London’s office investment market has had another stellar year with total turnover for 2016 expected to reach more than £16.8 billion, 20% ahead of the long term average (£14.4 billion) and only 15% down on 2015, one of the strongest years on record (£19.4 billion).