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London commercial property investment up 110%
02 Jul 2009
Written by Jenny Smith
Investment in commercial property in London has risen for the first time since the second quarter of 2007, according to the latest figures.
Cushman and Wakefield's statistics show that the capital's West End, City and Docklands areas saw £1.43 billion worth of transactions in the second quarter of the year, up by 110 per cent compared to the previous period.
The real estate firm reported that international buyers contributed significantly to the rise, with 38 per cent of purchases coming from overseas private investors, while foreign funds accounted for a further 22 per cent of investment.
"Their interest has been fuelled by a perception that the London market represents relatively good value, the continuing weakness of the pound and the lack of competition from the traditional UK/Irish debt buyers," said Clive Bull, head of central London investment and a partner in Cushman and Wakefield's London Group.
A recent report by commercial real estate firm DTZ found that prime rents in London's City and West End districts have fallen by 31 and 23 per cent respectively since the market peaked.
