International investors targeting London commercial real estate
London is set for an increase in commercial real estate investment in 2020 as international investors target the capital’s high-yielding office market, following the decisive 2019 UK General Election result.
That’s according to the latest research from Knight Frank, which has found that global investors have increased the total capital targeting London commercial assets to GBP48.4 billion, a 21 per cent rise on 2019 and GBP2 billionn higher than 2018. However, with just GBP2.3 billion of buildings for sale, investors will face strong competition, which is expected to drive values higher in 2020.
Knight Frank’s annual London Report details the opportunities and challenges facing the capital’s real estate market in the year ahead. It reveals that in 2019 London investment activity fell 15 per cent to GBP13.9bn, down from GBP16.8 billion in 2018, as Brexit uncertainty and a shortage of available assets constrained the number of deals.