London property turnover 'highest in a decade'
Commercial real estate investment in London is currently at its highest level in a decade, with this year's total turnover reaching £11.5 billion by the end of July, according to new data released by Savills.
The real estate leader reported that more than £2.3 billion was invested in central London's commercial property market in July alone, resulting in a 24 per cent increase in purchases compared to the same period in 2016.
According to Savills, Asian investors have continued to dominate the real estate market in central London, and this year accounted for 63 per cent of the total turnover, with European and UK investors accounting for 17 per cent and 11 per cent, respectively.
In fact, in the West End, Asian investors were found to account for half of the turnover in the real estate market, with Hong Kong-based Infinitus Property Group making the UK's largest ever single office building deal when they purchased the 'Walkie Talkie' building for £1.3 billion.
Stephen Down, head of Savills central London investment team, has suggested that the increase in interest among Asian investors is particularly significant due to the announcement earlier this year that the Chinese government will reduce real estate investment from mainland Chinese property developers.
Although predicted to reduce Asian investment in the UK, the news has had little impact on the market so far, and investors from Hong Kong in particular are expected to continue to be a strong force in the future. However, Mr Down suggested that buyers could become more selective as a result of the announcement.
Mr Down added: "We expect there to be more stock coming on to the market as we approach the end of the year as existing owners of investments take profits and, provided these sales are priced correctly, we should see continued strong turnover activity in the next three to four months."