Asian investors spending £4bn on London real estate

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Investors from across Asia are continuing to play a huge role in the success of the London real estate investment market, taking advantage of the weakness of the pound and spending more than £4 billion on real estate in Britain's capital in the first six months of the year alone.

According to figures released in a report by Cushman & Wakefield, the level of property investment made by Asian investors accounted for almost half of all real estate deals during the same period, with stats showing that £8.8 billion was invested in the region's housing and commercial property market in the six months leading to July 2017.

According to the report, some of the largest deals that tool place during this time included the purchase of the Leadenhall Building by Hong Kong based CC Land Holdings for £1.15 billion, as well as the sale of One Kingdom Street for £300 million to the same organisation.

Investors at China Resources Limited also made a significant dent in the overall investment, making the £315 million purchase of 20 Gresham Street, while Singapore-based Ho Bee Land bought 67 Lombard Street for £129 million.

Overall, Cushman & Wakefield's report revealed that the rise in Asian investment in London real estate has pushed investment up by 18.5 per cent from £7.45 billion in the same period in 2016.

Specifically, activity from investors in the Asia region including China, Hong Kong and Singapore was found to be at its highest level in five years, accounting for 46 per cent of London's overall real estate deals.

Commenting on the study, James Beckham, head of London capital markets at Cushman & Wakefield, said: "Asia-Pacific investors from across the entire region dominated the London market in the first half of this year and are set to continue with strong ongoing interest in assets right across the risk spectrum."

Although not as significant, London also saw a rise in investment from elsewhere. In fact, investors in Germany spent more than any other investors in Europe, despite Britain's decision to leave the European Union.

According to Cushman & Wakefield's report, German investors were responsible for four of the seven real estate purchases worth more than £200 million in the City of London in 2017, including the £310 million purchase of 2&3 Bankside by Deutsche Asset Management.

London's success in the investment market has also seen it dominate Britain's real estate sector in the past 12 months. According to a report by the Centre for Cities think-tank, just over half of the £43 billion that was invested in the commercial property market in 2017, a total of £21.8 billion.

The investment in London was also found to be significantly greater than in the South East, which was the second most successful region in the UK, securing almost £5 billion of 11 per cent of the real estate investment.

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