Investment in Commercial Property in Central London up 28%

Investment in Commercial Property in Central London up 28%

updated April 21, 2019

In the first quarter of 2019, commercial property investment in Central London (the City and West End) increased 28% to £3.2 billion, according to new data.

Figures from Savills show that in the first three months of 2019, investment volumes in Central London were also higher than those in the first quarter of 2015 (before the UK voted to leave the European Union).

The most active investors in the Central London market in the year to date have been from the United States, who accounted for 45% of the total transactions (£1.43 billion), although this was only across four properties.

Despite uncertainty in the market, Savills highlights that there has been significant capital flows into Central London real estate in the first quarter of 2019.

‘Despite the well-noted uncertainty hanging over the UK at the moment, this has not stopped a number of commercial property investors from recognising London’s innate strength,’ said Stephen Down, head of Central London investment at Savills.

‘Several of them actually see now as an opportunity and the deals that are offered to the market still seem to draw in a healthy level of prospective buyers, both domestic and international. We have seen a particularly strong appetite for commercial development and opportunistic stock, which is a response to the structural supply shortage that Central London is facing in the office sector,’ he added.

Property Wire

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