Investment into London’s commercial property market has reached its highest level ever, new research published by savills.co.uk claims.
The real estate adviser found that, during 2013, investment turnover in Central London reached £20.65 billion – the highest total ever recorded. Not only that, it makes for a marked increase on the £14.8 billion investment reported during 2012.
Much of the growth, it is thought, can be attributed to the increase in popularity Central London has enjoyed among Asian buyers. This demographic alone was found to be worth £5.8 billion out of the total, making for investment volumes that almost doubled over the course of just 12 months.
Specifically, the City welcomed £12.16 billion of the total transaction volume, whilst the West End came in at around a third less – totalling £8.4 billion by the turn of 2014.
However, Savills doesn’t expect such profound growth in the next 12 months but predicts that spending could remain steady.
Head of Central London investment at Savills, Stephen Down, told propertywire.com: “2013 was a record year for the Central London investment market, which was boosted by a number of very substantial transactions.
“UK institutions and property companies were particularly prominent, although when looking at purchases over £100 million, we also note that significant capital flowed into London from Kuwait, Singapore, China and Germany, demonstrating the city’s continued appeal on a global platform.”
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