London investments make for the most successful year since 2007 | 25 January 2013
The £14 billion invested into London’s commercial property market has put the capital back at pre-crisis levels for the first time, invezz.com reports.
Two-thirds of the investment in London last year came from foreign investors, spending a total of £14 billion. This makes last year the third highest for investment on record, behind only 2007 and 2006, at which point the economic crisis began.
Furthermore, this total represents a 50 per cent rise on figures recorded in 2011, according to the figures collated by the CBRE.
Geographically speaking the City of London accounted for the bulk of investments, with total values hitting 100 million. The Square Mile, meanwhile, rose from the £3.5 billion spent in 2011 to £7.2 billion in 2012. In the Midtown area (running between Holborn and Kings Cross) investment was at its highest level since 2005, reaching a total of £1.6 billion, whilst the West End contributed £4.4 billion to the total.
Speaking to cbre.co.uk about the results, executive director of the Central London Capital Markets, Michael Edwards, explained: “In 2012 we saw the third highest turnover of any year at £14 billion (compared with £17.5 billion in 2007 and £15.5 billion in 2006).
“But if you consider the prevalence of high levels of debt at the top of the market, compared with more limited availability last year, this actually means that 2012 arguably saw a greater investment of equity in central London than ever before.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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