Central London Property Investments Rise to £1.9bn

Central London investment volumes rose sharply during the second quarter as strong investor demand was satisfied following an increase in stock on the market, reports Investor Today; Investment turnover rose 57% over the quarter to reach £1.9billion.

Mike Edwards, Head of City Investment, CB Richard Ellis, said: "With investor demand still strong, investment volumes are expected to remain high. Overseas buyers remain very active in the market and accounted for 62% of total investment volume. The acquisition of the Knightsbridge Estate pushed Middle Eastern investors’ share of Central London investment purchases to 45%.

"The Germans were still quite active and were responsible for 11% of investments. On the domestic side, UK property companies and UK institutions continued to show interest in the market and accounted for 19% and 14% of investments respectively."

Prime office yields fell to 5.5% in the City and 4.25% in the West End – prime yields have compressed in each market by 125 basis points since the middle of last year.