Positive commercial property investment figures for City of London.
New figures from property experts Jones Lang LaSalle show that overseas investors have increased the amount of money they spend on London office space. Statistics show that buyers from overseas have increased their spend by 25% in H1 this year.
Overall overseas buyers have invested in around £3.1 billion worth of office space in Central London during H1. This subsequently accounts for 57% of the complete office investment volumes in London itself. According to Jones Lang LaSalle this also represents a 25% increase on the figures seen in the first six months of last year.
Commenting on the statistics Damian Corbett, head of London capital markets at Jones Lang LaSalle said: “London remains the focus for global capital, with far eastern high net worth interest particularly evident. The last quarter has also seen a pick-up in activity from UK institutions.”
In the City of London itself, there was a recorded £1.6 billion of investment during the second quarter. Amongst this a huge 57% was accounted for by overseas investments. What’s more, within the first six months investment volumes reached £3 billion.
“Development plays are attracting strong interest, especially those with residential conversion angles in core West End locations. Lack of stock continues to be an issue and with no sign of investor demand tailing off competition will remain strong for good quality assets,” commented Mr Corbett.