London real estate to flourish
The Central London property market has witnessed significant capital inflows since the referendum, despite an initial pause for breath. For London real estate, the shift towards a wider world of occupiers and investment capital is at an advanced stage. Last year, 73%1 of transactions involved an overseas buyer compared to 65% in Singapore, 40% in New York and 33% in Paris, According to Knight Frank’s The London Report – 2017.
Nicholas Holt, Head of Research, Asia-Pacific, Knight Frank Asia-Pacific, says, “Appetite for London commercial property from China and Hong Kong-based investors remains strong. Indeed, the currency advantage that resulted from the outcome of the referendum has made the UK in general even more attractive to these buyers. Looking forward, given the continued drive for diversification, we expect the UK’s capital, which boasts strong liquidity and a robust economy, to remain high on Chinese and Hong Kong investors’ wish lists.”
London’s success as a business location saw £9.3 billion of overseas money invested in Central London offices in 2016, out of which 80% were from outside of Europe. China and Hong Kong were the largest sources of foreign investment, accounting for £2.9 billion or 31.2% of total overseas investment, while investment arising out of Asia-Pacific made up £1.0 billion or 10.8% of total overseas investment.