Overseas investment in London commercial property continues | 3 January 2014
New research proves that wealthy foreign investors are still seeing value in London’s commercial property market, which continued to outpace its global competitors over 2012.
Figures from Jones Lang LaSalle show that overseas investors have spent £16 billion on securing commercial property in London over the last 12 months, resulting in the best year for business since 2007.
Some of the more extravagant purchases included More London, snapped up by Kuwaiti buyer St Martins Property Group for £1.7 billion, the former Canadian diplomatic base at One Grosvenor Square, bought by an Indian developer for £306 million, and the 500,000 sq ft St Botolphs in the city, sold to a German fund for £1.7 billion.
Not only this, nationmultimedia.com also reports that Jones Lang LaSalle recently named St James’s in London as the world’s most expensive office area,fending off competition from Central in Hong Kong and Finance Street in Beijing.
Analysts have specifically seen a growing interest from buyers in the Asia Pacific region and this is helping the capital remain ahead of the competition.
New York is the nearest challenger to London’s commercial property crown, although the UK capital still generates one-and-a-half times more revenue than the Big Apple.
Damian Corbett, head of central London office investment at Jones Lang LaSalle, told standard.co.uk: “The final quarter has been very strong and turnover has exceeded initial expectations after a subdued start to the year.
“London remains the most active global city, with deal volumes around one-and-a-half times its nearest competitor, New York.”
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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