London Sees Record Commercial Property Investment In Q1

By Editorial 14 April, 2014

Central London's commercial property transactions totaled GBP4.13bn in the first quarter of this year, the highest Q1 level ever recorded in the area, according to New York-based real estate services firm Cushman and Wakefield.

In the City and Docklands area, total investment volume in Q1 2014 reached GBP3.31bn (USD5.55bn) across 32 transactions – this is a record Q1 result. However, total investor volume is hugely reliant on a small number of very large transactions.

Once again, overseas investors remain the most active and accounted for 77 percent of investment volume in the City and Docklands.

This quarter saw the return of UK investors who have been the most active by number of transactions completed. There were 23 UK purchaser transactions during the quarter which equated to a volume of GBP765.5m and represented 23 percent of market volume. This also reflects an average transaction size of GBP33.28m.

Turnover for the second quarter of 2014 is likely to be strong with approximately 25 transactions currently either under offer or exchanged, amounting to an additional GBP800m of turnover.

London's West End saw the highest annual turnover on record in 2013 at GBP8.2bn. Following that, Q1 2014 has got off to a steady start with transaction volumes totalling GBP824m across 32 transactions (average lot size GBP25.75m). This is a 19.6 percent decrease compared to Q1 2013 which saw GBP1.026bn in 41 transactions.

From the buyer perspective, Q1 2014 saw the UK investor account for 50 percent of purchaser volume in the West End. That said global investors are also very prevalent, with buyers from the Far East, Continental Europe, North America and the Middle East all making purchases in Q1 this year.

Tags: Investment | Real-estate Investment | Real-estate | United Kingdom | Expats | Europe | North America | Middle East |


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