London has continued to remain the top choice for international investors in the office market segment, said www.propertyweek.com quoting Knight Frank’s London report. In 2016, the London office market attracted international investments worth £9.3bn followed by New York at £8bn. The third spot was occupied by Paris, which attracted international investments worth £3.8bn.
This shows that London, which is considered Europe’s financial capital, is the favourite city of MNCs, who preferred to set up their headquarters and core operations in the city. That the investments poured into London despite Brexit and subsequent economic impact reflects the strong fundamentals of the city’s property market.
Chinese and Hong Kong investors accounted for the bulk of the office deals in London in 2016 by pumping in £2.9bn. Investors from the Middle Eastern countries bought office properties worth £1.6bn while European investors (excluding UK) invested £1.4bn. Other Asia-Pacific countries (excluding China & Hong Kong) invested around £1bn in the London office market. US investors too showed faith in the London office market by investing £1.1bn.
One of the biggest factors responsible for the enhanced overseas investments in London is the weakening of the British Pound. Knight Frank has predicted a “solid market” for London in 2017 as well, as the Pound continues to remain attractive for international investors.
The London office market attracted £9.3bn of overseas investment in 2016 – making it the most popular global office market for foreign real estate buyers, figures from Knight Frank’s London Report show.