London is the World’s Top Destination for Investment in Commercial Real Estate

London is still top dog for investment in commercial real estate even with ongoing uncertainty about Brexit. New research has shown, London is well above Manhattan and Paris. According to the analysis report from international real estate firm Knight Frank.

It found £16.2 billion was invested in central London’s commercial offices in 2018 compared with £14.3 billion in Manhattan, £12.1 billion in Paris and £8.4 billion in Hong Kong. Although Greater China remains the largest source of investment in central London real estate.

Greater China accounted for £3.48 billion in 2018 and 21 per cent of all investment in central London offices last year, despite new capital restrictions imposed this year. China is still expected to be the biggest potential investor in London this year with £10 billion, or 25 per cent of the total investment projected for 2019.

It also reveals, that while total investment volumes for central London were down slightly on 2017, the average deal size rose to an all-time high of £81.5 million in 2018 and it is predicted that there could be investment of £40 billion this year.

According to William Beardmore-Gray, Head of Central London at Knight Frank, London is the most attractive city in the world for long term investment as it has proved its ability to adapt to meet the demands of the modern global economy.

“Big banks like Deutsche, tech giants like Apple and Facebook and life sciences groups like GSK are the heartbeat of our capital.

“The growth in co-working space is a positive sign of London’s dynamism and the vitality of the creative economy. London’s resilience and reputation as a safe haven for investment, despite Brexit, is remarkable” he said.

Mr Beardmore-Gray believes while leaving the European Union will be difficult, as long as London has a fantastic infrastructure and places, great institutions and security, excellence in education and an abundance of talent, property occupiers and investors will continue to flock here from across the globe.

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https://blog.mackrell.com/london-worlds-top-destination-investment-commercial-real-estate/
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Nick Davies
Nick is the Head of Property in our London office, having joined in the firm in 2005. His expertise covers a wide range of real estate transactions, with cases including both residential and commercial property deals, shops, pubs, restaurants, development sites, offices, lease renewals, enfranchisement, litigation and corporate support.