London property purchases driven by foreign investors | 8 April 2013
Central London commercial property remains a key target for foreign investment as new figures suggest international buyers represent the biggest players in the market.
Figures from Cushman and Wakefield, cited by ft.com, suggest commercial property sales hit £2.75 billion for the first three months of the year, with 71 per cent of buyers coming from outside the UK.
The data goes some way to reinforce London’s status as a favourite among US, Middle Eastern and Asian investors with much of the sales volume accounted for by very large deals.
For instance in London’s West End, £965 million worth of property changed hands in the first three months of 2013, with 33 transactions concluding in the first quarter. Overseas investors accounted for 51 per cent of purchases, according to figures cited by frrole.com.
Mike Tremayne, head of West End investment at Cushman and Wakefield, believes the market continues to act “as a target” for overseas and domestic investors alike.
In addition Bill Tyser, head of city capital markets at Cushman and Wakefield, commented on the figures: “Whilst there are concerns over the availability of stock to meet this intensified demand, there are also signs of profit-taking emerging from investors who acquire property at the beginning of this ‘crisis cycle’.”
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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