In Q3 2013, Central London investment volume 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, the leading property adviser.
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.”
Please note: These figures relate to our classification system. For the City we include postcodes E1, EC1, EC2, EC3 & EC4, for the West End we include postcodes W1, W2, W8, SW1, SW3, SW7 & NW1, for Midtown we include postcodes N1, WC1 & WC2 and for the Docklands we include postcodes E14 and E16.
