According to Knight Frank's London Study, London remained the world's top commercial real estate investment destination in 2018.
Despite the continuing confusion surrounding Brexit, London remains by far the most famous global real estate investment destination, with £16.2 billion ($21 billion) invested in the UK capital's commercial offices in 2018. This compares to investments of £14.3 billion ($18.5 billion) in Manhattan, £12.1 billion ($15.6 billion) in Paris, and £8.4 billion ($10.8 billion) in Hong Kong. Despite the fact that overall investment volumes in Central London were marginally lower in 2018 (£16.8 billion, or $21.7 billion), the average transaction size increased to an all-time high of £81.5 million ($105 million). qatar property
The following are some of the highlights of global commercial investment in 2018:
In 2018, London's commercial offices attracted £16.2 billion ($21 billion) in investment, outpacing Manhattan, Paris, and Hong Kong.
Greater China continues to be the biggest real estate investor in London.
A total of £40 billion ($51.8 billion) in global capital is currently looking to invest.
Despite new capital controls introduced this year, Greater China remains the largest source of investment in Central London real estate, accounting for £3.48 billion ($4.5 billion) in 2018 and 21% of all investment in Central London offices. Despite the fact that Greater China remains London's largest source of funding, the overall amount of investment from the area was down 51% from 2017, when Chinese investors invested a record £7.12 billion ($9.2 billion) in commercial offices in Central London.
South Korea dramatically increased its investment in Central London in 2018, investing £2.56 billion ($3.3 billion), an eight-fold improvement over the £300 million ($388 million) invested in 2017. In 2018, capital from the Far East accounted for 47 percent (£7.67 billion, $9.9 billion) of all investment in Central London offices.
"While 2019 poses ongoing challenges, international investors remain undeterred," says Nick Braybrook, Head of Central London Capital Markets at Knight Frank. Our Global Capital Tracker shows that £40 billion ($51.8 billion) is still earmarked for London this year, with some investors seeing political unrest and currency weakness as an opportunity, particularly given the strong occupational market fundamentals.
"While Greater China's demand has dwindled, they were still very active in 2018." Increases in demand from Singapore and Japan partially offset the decrease, and the tracker, surprisingly, shows a rise in domestic demand this year. When occupier market conditions change, domestic demand is always the first to react."
"London is the most desirable city in the world for long-term investment," said William Beardmore-Gray, Head of Central London at Knight Frank. It has shown its ability to adapt to the demands of the new global economy, as shown by the office sector in London. The heartbeat of our capital is big banks like Deutsche, tech giants like Apple and Facebook, and life sciences companies like GSK. The expansion of co-working space is a symbol of London's dynamism and the creative economy's vitality. Despite Brexit, London's resilience and reputation as a safe haven for investment is impressive.
"We see more positive changes ahead, as London is poised to become a hub for scientific research and development, attracting money from previously untapped sources." With new sub-markets emerging in Nine Elms, Stratford, and White City, London's potential continues to expand.
"Leaving the European Union would be difficult, but property occupiers and investors will continue to flock to London from all over the world as long as it has fantastic infrastructure and places, great institutions and security, excellence in education, and an abundance of talent."
According to Knight Frank's Global Capital Tracker, £40 billion ($51.8 billion) of capital is looking to invest in commercial real estate in 2019, with Greater China being the largest potential investor in London, with £10 billion ($12.9 billion), or 25% of the total, looking to invest in 2019.