London office investment 23rd October 2013

In Q3 2013, central London investment volumes rose to the highest level since Q3 2007 at £5.1bn.

 

More than half (54%) of investment was from overseas buyers totalling £2.7bn, according to new research by BNP Paribas Real Estate.



When analysing the London submarkets in further detail, 82% of Midtown investment in Q3 2013 was from overseas buyers and 57% of West End investment in the third quarter 2013 was from overseas investors. In the City, 44% of investment made in Q3 2013 was from overseas buyers – a drop since Q2 2013, as UK institutions and property companies increase investment activity.



European investors were most active in the Central London office market in Q3 2013, representing 20% of the market, Asian investors were also very active representing 16%, Middle Eastern investors represented 8% and US investors represented 5% of the market in the third quarter.



BNP Paribas Real Estate’s senior director of international investment, Andrew Cruickshank, said: “Even though we have seen UK institutions and property companies adopt a more active role in the market, with a more competitive edge, it is clear that overseas investors will continue to dominate. However, we expect much of the overseas capital will still require strong local JV participation, both in London and the regional markets.”