The financial capital of Europe, London, continues to remain a major draw for global investors, with £1.27 billion flowing into the commercial property segment. Bulk of the investments are in Central London with the total investment volume reaching £5.89 billion this year.
Data released by international real estate advisor Savills clearly establishes London as the top market for international investment in commercial property.
In April, Savills recorded £694 million traded in London across nine deals. Asian buyers took the lion’s share of activity (50 per cent market share) while German investors accounted for 26 per cent of all deals. The West End saw £578 million transacted over 11 deals in April. Asian purchasers accounted for most turnover in the West End with a 43 per cent market share while European purchasers, again predominantly, from Germany, made up 35 per cent of all transactions, Savills said in its report.
According to Mr. Stephen Down, Executive Director and Head of Savills Central London investment team, there is a significant weight of money chasing London assets. At the end of the first quarter of 2017, Real Capital Analytics’ data showed that London was the world's number one pick for cross-border investment, followed by Hong Kong and Manhattan.
Central London markets are dominated by international investors, particularly those from Asia and Europe, as they view London as a haven globally and can maximise the opportunities of a very favourable exchange rate.
April 2017 saw £1.27 billion invested in central London commercial property across 20 deals, taking total investment volumes for the year to date to a record £5.89 billion