The Capital’s Surprising Commercial Property Boom
According to recent research, investors have spent almost £50 billion on commercial property in London in the last 3 years.
Billions invested in London's commercial property
Though there has been much speculation about what would happen to the UK’s commercial property market since the Brexit vote in 2016, a study has recently revealed that the sale of commercial property in London, including pubs, shops and offices, has reached £47 billion since 2017. The latest figures show continued interest and investment in central London’s commercial property, despite worries some businesses would leave the capital in favour of more stable waters, leaving property empty and landlords without income.
Some of the most significant commercial property purchases during the time the study analysed comes from the purchase of Citigroup’s London HQ at 25 Canada Square, which cost almost £1 billion, and the £80 million sale of offices overlooking the iconic St Paul’s Cathedral by a Hong Kong firm.
London top of commercial investment index
The timing of this data is poignant as it was released the same week that third quarter figures showed investors have actually reduced spending ahead of the looming Brexit deadline on Halloween. The firm responsible for the study believe this slow down is the result of fewer properties available for sale as sellers wait to see what happens after 31st October. They go on to say that their findings show ‘resilience in the London market throughout a long period of political instability.’
London has also been ranked as the number one for the best long-term commercial real estate investment potential in Savills Investment Management’s Dynamic Cities consisting of 130 European countries for the third year running. The cities are judged and ranked on six different factors; infrastructure, interconnection, inclusion, inspiration, innovation and investment. Being top of this index is further evidence that, despite the heavy cloud of Brexit putting people off, London continues to be a sound place to invest in commercial property.
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