Investment in City of London offices is up by 7.6 percent for the same period last year reaching £9.47 billion as of the end of October 2018, according to Savills.
Stephen Down, executive director and head of Savills Central London investment team, says “Demand for central London offices has remained buoyant throughout 2018. While we may not see the year set any new records, annual volumes look set to either surpass or draw very close to those of 2017.
He adds: “London’s position as a global safe haven is unlikely to change because of Brexit. Investors choose London, not just for its position in the EU, but for the property market’s liquidity, transparency and relatively low transactional costs packaged around long leases relative to other tier one cities and a landlord friendly lease structure. While it retains its plethora of some of the best office buildings in the world, and continues to look good value compared to continental Europe, investor interest will remain.”
Further supporting this fact, a survey of executives managing more than 500 billion pounds ($640 billion) of real estate, conducted by Knight Frank, has illustrated how a Brexit Britain will be the top destination for major European investors to snap up commercial property next year. In addition, more than a fifth of those who took part said the U.K. would be their top pick, up from around 12 percent the previous year.
You can read our past blogs on how the annual value of London’s commercial sales of property has soared by 166% since 2014 and how London has regained its top spot for commercial property investment to find out more about the growing interest in the London property market.