For the first time in 10 years, the commercial real estate sector in London witnessed the highest level of transaction for any quarter, attracting £2.6 billion investments between January-March 2017, according to latest research.
Data released by international real estate advisor Savills showed that The City of London investment market saw £1.9 billion of commercial real estate transactions in March, taking the total for the first three months of the year to £2.6 billion, the largest first quarter since 2007.
Savills noted that international investors led the investments in the London commercial property segment. As many as 33 deals were transacted in from January to March 2017, equating to an average lot size of £146.14 million. “As of the end of March, Asian purchasers had accounted for majority of City turnover at 64 per cent followed by UK and European purchasers both accounting for 13 per cent, and US and Middle Eastern purchasers both accounting for 5 per cent,” Savills said.
This investment trend clearly demonstrates the trust and faith showed by investors in the London property market. The city continues to remain the financial capital of Europe, as its real estate fundamentals are strong with interesting returns to investors.
33 deals were transacted in Q117, equating to an average lot size of £146.14 million.