British buyers were more active that overseas investors in London’s commercial property market during the last quarter, new figures show.
According to cityam.com, data from Cushman & Wakefield reveals 23 deals worth £765.5 million were completed by UK buyers over the last quarter in the City & Docklands area alone. Despite the rise in British investor confidence, though, overseas buyers still account for 77 per cent of all commercial property investment in this area.
Overall, a record breaking £4.13 billion property transactions took place in central London during Q1. There is some concern, however, that London is too dependent on a small number of very large purchases. For example, just one acquisition was completed for £1.7 billion last quarter, accounting for over half of London’s total investment volume.
Some 32 other transactions made up the remaining £3.31 billion invested in Q1, reports property-magazine.eu.
Bill Tyser, partner in Cushman & Wakefield’s city investment team, feels positive about London’s future in commercial property.
“From a global perspective, City of London prime yield profile remains attractive and there continues to be a considerable weight of money – both domestic and international – facing the market,” he explains.
“As the second phase rental recovery builds, coupled with positive outlooks on the UK economy and employment growth into London, we can expect continuing strong activity and further yield compression as we move through 2014.”
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