Overseas Investors Continue To Favour London’s Commercial Property Market

Investment activity in London’s commercial property market has risen again for a second consecutive quarter. Figures for Q3 2009 show that £1.602 bn was invested in central London’s main West End and City & Docklands markets, an increase of over 12% on Q2’s total of £1.432 bn and a 29% rise on the same quarter last year. It is the first time the capital has delivered two quarters of consecutive growth since Q2 2007.

The dominant buyers continue to be overseas investors attracted by the weak pound and the very attractive returns achievable resulting from London’s relatively rapid price correction compared to other markets across the world.

Transaction volumes in West End up 24% on previous quarter
The West End again showed the biggest increase in activity with £909m invested; an increase of 24% on Q2’s total of £732m and up 32% on Q3 last year. There was no sign of the 'traditional' summer break with vendors keen to take advantage of the purchaser demand which has been building up throughout 2009.

In excess of 70% of all transactions were by non-UK buyers with London staying firmly on top of many international investors’ shopping lists. Reasons for this trend include the continuing weakness of the pound and the fact that the London/UK market has corrected more quickly than other global markets providing investors with relatively attractive returns.
IMMONEWS