The Central London property market, one of the global real estate hotspots, is set witness a record level of investment in 2017, according to international real estate adviser Savills.
It predicts that the total volume of commercial real estate transactions in Central London during 2017 will exceed £20 billion and may end the year higher than the previous record level set in 2014 of £21.6 billion.
Transactions in Central London in the first three quarters of this year reached £14.22 billion, with buyers originating from more than 27 different countries. With the average final quarter turnover in the last five years being £6.6 billion, Savills says this puts 2017 volumes on track to easily exceed the £20 billion threshold, and could possibly set a new annual record.
If the last quarter follows previous patterns, this would put 2017 volumes significantly ahead of the long-term annual average of £14.4 billion, says Savills, and well up on 2016, when £15.9 billion was deployed into central London commercial property.
These transactions indicate that London continues to remain the preferred hub for investments into real estate as the city’s fundamentals are strong. Global investors are continuing to pour money into London commercial property as the ROI is secured from the long-term.
Stephen Down, executive director and head of central London investment at Savills, comments: “2017 could be a record breaking year for London investment, and at the very least, volumes look set to break the symbolic £20 billion barrier. UK real estate, particularly prime assets with strong income streams in the capital, continues to appeal to a broad spectrum of international investors