Central London office investment has now reached an all-time high, with the fourth quarter of 2013 becoming the highest grossing quarter on record. Investment volume peaked at £7.46 billion between the start of October and the end of December, increasing by 24 per cent in comparison with results achieved in the third quarter.
Furthermore, according to leading property advisor BNP Paribas Real Estate, this astonishing performance helped to lift 2013 annual investment in central London to £20.72 billion. As a result, not only the quarter but the year as a whole beat all previously set targets, indicating a strong start to 2014 for the commercial sector.
Head of City investment at the firm, Richard Garside, says; “2013 was another very positive year for the Central London investment market.
“The last quarter featured two exceptionally large transactions with More London and Broadgate deals jointly contributing a whopping £3.4 billion to the year’s total investment volume.
“The continued demand from investors has sharpened prime yields from 5 per cent to 4.5 per cent in the City and 4 per cent to 3.75 per cent in the West End during 2013.”
As has been the case in recent years, much of the investments made within Central London were as a result of interest from overseas clients. Far Eastern and Middle Eastern investors were particularly active in the market, accounting for 20 per cent and 17 per cent of deals respectively, while Germans and North Americans took up a further 9 per cent and 8 per cent of market representation.
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