London remains the principal point of global real-estate investment, retaining its place as the most popular city worldwide. This is according to a new report which outlines the rapidly growing demand for commercial property in the capital.
For nine of the past ten years London has been the leading city for cross-border investment – this status has been preserved by a recent stream of Asian money.
Cushman & Wakefield – the global real company, which is based in the UK – published a capital markets report that certifies London’s supremacy. The report shows that London was able to resist the challenges of Amsterdam, Paris and Hong Kong in order to maintain the top spot, as it experienced a 22 per cent increase in overseas investment in the year up to the second quarter of 2018.
David Hutchings, head of European investment strategy at Cushman and Wakefield, said: “For long-term investors, while Brexit is a concern, it is one that they are prepared to look through. They are focusing on the size, scale and heritage that London has. They know it is still going to be there in 10 years.”
Recently, numerous high-profile transactions have reinforced London’s prominence, these include the sale of RBS’s headquarters to a Hong Kong-focused property developer for a sum of £1bn in June, and the purchase of the new Goldman Sachs HQ by South Korea’s National Pension Service for £1.1bn in August.
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Now, a number of experts from within the industry are anticipating the arrival of large investment from another Asian financial powerhouse: Japan. Lee Sheldon, a property tax partner at Addleshaw Goddard, said: “What we are hearing in the trade generally is that Japan is the next one ready to invest properly in the UK.”