A flurry of investments from both domestic and global buyers this year has pushed volumes past the £13bn mark.
Buyers originating from more than 27 different countries are active in central London’s office investment market and have pushed transaction volumes up to £13.4bn this year.
This is a 23% increase on the volume reached at the same point in 2016 and 35% ahead of the 10-year average, according to Savills.
The international real estate advisor notes a resurgence in demand in 2017 from German and UK investors in particular who have deployed £2.05bn and £2.4bn into central London commercial real estate.
By comparison, German investors spent less than £250m on Central London offices throughout 2016, while UK buyers accounted for only £1.2bn.
The surge in activity from UK and German buyers, alongside a broad spectrum of global capital targeting the City’s commercial real estate, adds to the ongoing record levels of investment from Hong Kong buyers (£4.5bn invested in central London in 2017 year to date) and those from mainland China (£1.07bn).
Interestingly Savills has also pointed out that of the £4.5bn deployed in London from Hong Kong, £2.43bn can be accounted for in just two deals - CC Land acquiring the Leadenhall Building and LKK Health Products Group buying 20 Fenchurch Street.
Felix Rabeneck, director in the central London investment team, said: “The breadth of diversity in investors active in London in 2017 highlights the continued appeal of the city’s commercial real estate market as an attractive destination for capital.
“London displays liquidity across the spectrum. Sales such as the Leadenhall Building and 20 Fenchurch Street highlight the appetite amongst Asian investors for ‘trophy’ assets.
“Outside of this sphere of interest we see assets perceived as non-core attract a broad professional investor base, so long as they are priced realistically.”
Key deals so far this year include:
BQ’s commercial property updates are supported by specialist lender Together, which provides funding to businesses and property investors nationwide. With over forty years’ experience in the financial services industry, Together offers short-term finance, auction finance, buy-to-let, residential and commercial mortgages and secured loans.
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