London remains top global destination for #CRE investmentDigital Editor
Since the dreaded #Brexit made its appearance and assumed a starring role in the UK’s political landscape, the real estate market has been trying hard to predict the impact it will have on commercial real estate.
In the midst of uncertainty, this week’s news that #London has retained its title as the world’s number one destination for commercial property investment has come at the perfect time to demonstrate the resilience and adaptability of the UK’s capital. Concerns over Brexit, it seems, have been outweighed by a weak pound and continuing demand for London office space – Brits at #MIPIM will enjoy crowing over this point!
Although total investment decreased slightly from last year, the total deal volume of £16 billion and the average deal size of a record £12 million pushed London ahead of Manhattan, which came second worldwide, followed by Paris and Hong Kong.
According to @knightfrank’s Global Capital Tracker report, Chinese investors being the dominant buyers in Central London real estate was another reason Greater China has been in the news this week, in addition to the celebrations of the Chinese New Year. South Korea’s significantly increased investment in the capital grew eightfold and nearly half of the sum came from @GoldmanSachs’s sale and leaseback of its new London headquarters to Korea’s National Pension Service.
Meanwhile, it’s interesting to see that a report by #JLL found that Middle Eastern investment into western commercial property fell more than a third last year due to oil prices and concerns over #Brexit.
This shows that most likely #Brexit on its own is not enough to determine the size of investment coming into the UK from international markets, but more often than not it is also a reflection of the strengths, challenge and geopolitics that investor countries experience within their market.
How will #Brexit’s full force impact the UK’s real estate market? We will just have to wait and see, but this week’s news about London certainly brings hope to the future of real estate and we’re not headed for #DonaldTusk’s “special place in hell”. #reasonstobecheerful #LondonIsOpen