New figures by BNP Paribas have revealed that investors from overseas were responsible for 82 per cent of commercial property transactions that occurred in the City of London in the first half of 2013.
According to the BNP Paribas report, the majority of buyers are from the Middle East and Asia, with particular government-backed funds coming from Singapore, Korea and Malaysia and deregulated economies such as China. Examples of high-profile purchases in the past six months have been the purchase of the £260 million Lloyds building by Chinese life assurer Ping An, the Kuwaiti government's acquisition of the £385 million Bank of America European headquarters, and a Malaysian take-up of a £215 million office block in the City.
Richard Garside, a director for BNP Paribas in London, said: “All parties are attracted to London by the high quality of investment stock and the mature and transparent nature of our market."
Central London has often been seen as a 'safe bet' for international buyers, by offering high yields of between four and six per cent, and little volatility when it comes to fluctuation of property values. The area has usually been dominated by US and UK firms, but it seems that now the Far East wants a slice of the action.