Commercial property investment in the capital has hit its highest figure since 2007, a report from Cushman & Wakefield reveals.
Around £13.57 billion worth of commercial property transactions took place in 2012 – a 25 per cent increase on 2011’s total of £10.9 billion.
In the City, transactions totaled £8.5 billion worth – a 35 per cent increase on the £6.3 billion from 2011. However, Q4′s turnover of £1.15 billion was the weakest quarterly performance of the year, down considerably compared to the £1.75 billion in 2011.
The total volume of transactions in the West End in 2012 amounts to approximately £5.07 billion, a slight improvement over the £4.9 billion seen in 2011. Approximately £1.3 billion of which coming through 49 deals seen in Q4, marginally more than the quarters 1 to 3.
By the end of Q4 2012, a further £850 million of West End investment stock is awaiting completion. It is understood that a further £1.1 billion of stock under offer.
Mike Tremayne, head of West End investment at Cushman & Wakefield, said: “The West End continues to act as a target for overseas and domestic investors alike, all looking to benefit from the underlying positive occupational demand, strong liquidity and general ‘safe haven’ qualities that good quality investments in the West End have proven to offer.“
Overseas investors continued to flock to the capital, accounting for 80 per cent of City commercial property transactions over the year, and investors from Asia made up 25 per cent of all of the year’s City deals.
Bill Tyser, head of City investment at Cushman & Wakefield, said: “With continued macro-economic political unrest and the secure nature of freehold investment property in the UK, coupled with a relatively weak pound and our transparent and easy access into the property market, it is likely to ensure this international interest will continue into the foreseeable future.“