2018 is going to be another stellar period for investments in the City of London after the past year was able to set a new record.
According to Savills, a real estate adviser, the total annual volumes of commercial property investment in the City reached £12.6 billion, surpassing the 10-year average by 57 percent.
During the first three quarters of last year alone, volumes was able to reach £8.5bn, with the increase in turnover resulting from heightened demand for “trophy assets.”
Overseas customers accounted for the majority of the activity, with investors of over 28 nationalities purchasing real estate in London.
Over half of total turnover of the City is now accounted for by buyers from Asia, as compared to the 14 percent that is attributable to buyers from Europe and 12 percent to those who are from the United Kingdom.
The director of the central London investment team at Savills, Richard Bullock, stated that the demand for the “safe haven” of London property was expected to continue throughout the year.
Bullock stated: “2018 has continued to see significant interest from international investors, many of whom are looking to diversify capital and preserve wealth outside their domestic markets.
“As such, they’re targeting the relative safe haven of the UK, especially London; the most liquid real estate market in the world. Looking ahead, we anticipate similar levels of demand this year as London remains good value compared to other major cities in Europe and Asia-Pac which should lead to strong pricing being achieved for the very best buildings”.