Search Acumen, the property data and technology provider, analysed HM Land Registry data for Greater London’s 28 boroughs and the results have shown that the annual value of London’s commercial sales of property has soared by 166% since 2014, up from £11.3 billion in 2014 to £30.1 billion in 2017.
2018 is set to be another year of strong performance in the commercial market, with £12.7 billion worth of commercial sales already achieved.
Brexit uncertainty fails to dampen investment appetite in the capital’s property market, with Search Acumen’s analysis illustrating that the number of transactions is also increasing. Since 2014, annual commercial transactions in London have increased by 114% from 7,445 to 15,939 in 2017.
Commercial transactions also account for an increasing share of London’s property market activity as a whole. In 2017 and 2018 to date, 23% of London’s property transactions were commercial in nature compared to private residential transactions, a significant jump from just 9.5% back in 2014.
Andrew Lloyd, Managing Director of Search Acumen, comments: “London’s commercial market is booming at £30.3 billion in 2017, with transaction numbers more than doubling in just four years. Despite ongoing uncertainty, the signs suggest 2018 is set to be another bumper year, as Brexit fails to dissuade investors across the globe from buying property in our capital.”
The increase in the number of commercial property investments comes as no surprise, as Cushman & Wakefield’s most recent capital markets report indicated that London has kept its crown as the world’s most popular city for global real estate investment. London has now held this position for nine of the past 10 years. This follows a 22% year-on-year rise in investment from abroad in the 12 months leading up to the second quarter of 2018.
“For long term investors, while Brexit is a concern, it is one that they are prepared to look through. They are focusing on the size, scale and heritage that London has. They know it is still going to be there in 10 years,” according to David Hutchings, Head of European investment strategy at Cushman and Wakefield.