By +Eric Jafari
Overseas investors are continuing to flock to
London and are specifically targeting the City and West
End, according to Savills. The international real estate advisor
revealed that in 2012 foreign buyers accounted for 76 per cent of
overall transactions in the City and 67 per cent in the West End.
This compares to 60 per cent recorded for both markets in 2011.
Transaction volumes in the city totalled £8.9 billion, while the
West End enjoyed £6.1 billion worth of sales overall. Among
overseas buyers, Asian investors dominated in the City, accounting
for £2.27 billion of transactions. Savills stated that during the
year they advised people from Malaysia, Japan, Greater China and
Korea about purchasing in London, including the sale of Thames
Court and 10 Queen Street Place.
Europeans were the biggest spenders in the West End and were
involved in transactions totalling £1.55 billion. Italy, Spain,
Germany and Sweden were the most active countries, with the sale of
1 Southampton Row in Covent Garden and King's Place in King's Cross
the two sales of note.
However, it isn't just overseas buyers that have their sights
set on the capital and investors from the UK also made their
presence felt in 2012. Savills claim that Britons accounted for 24
per cent (£2.17 billion) of market share in the City and 33 per
cent (£2,019 million) in the West End.
Stephen Down, head of Central London investment, commented:
"Central London has continued to appeal to a wide range of
investors, particularly from overseas who are generally attracted
by the highly liquid market with larger, prime properties that are
let on a longer lease, with a secure income and a lower yield. In
contrast, domestic purchasers in Central London have been focussed
on smaller lot sizes that are multi-let, which could include
secondary properties, where they can implement a strategy to work
the asset and then remarket."
British buyers are also exploring the US market and Stonehage
Investment Partners told the Financial Times that residential and
commercial properties are now in high demand. US residential
property accounts for between eight to ten per cent of a typical
20 February 2013
London Prime Property Market,London Property Demand,Overseas Property Investment,West End Property Activity