According to Knight Frank's London Report, London remained the world's top commercial real estate investment destination in 2018. Despite the lingering uncertainties surrounding Brexit, London remains by far the most popular global real estate investment destination, with £16.2 billion ($21 billion) spent 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 total investment volumes in Central London were slightly lower in 2018 (£16.8 billion, or $21.7 billion), the average deal size increased to an all-time high of £81.5 million ($105 million). real estate companies qatar
The following are some of the highlights of global commercial investment in 2018:
In 2018, London's commercial offices drew £16.2 billion ($21 billion) in investment, outpacing Manhattan, Paris, and Hong Kong.
Greater China continues to be the top real estate investor in London.
A total of £40 billion ($51.8 billion) in worldwide capital is actively searching to invest.
Despite new capital limits implemented this year, Greater China remains the greatest source of investment in Central London real estate, accounting for £3.48 billion ($4.5 billion) in 2018 and 21% of total investment in Central London offices. Despite the fact that Greater China is London's largest source of capital, the total volume of investment from the region 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 increase 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 total investment in Central London offices.
"Although 2019 presents continuous obstacles, overseas 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, especially given the solid occupational market fundamentals.
"While Greater China's demand has dwindled, they were nonetheless highly active in 2018." Increases in demand from Singapore and Japan partially offset the decrease, and the tracker, surprisingly, shows an uptick in domestic demand this year. When occupier market trends improve, domestic demand is frequently the first to respond."
"London is the most appealing city in the world for long-term investment," said William Beardmore-Gray, Head of Central London at Knight Frank. It has demonstrated its ability to adapt to the demands of the modern global economy, as evidenced by the office market in London. The heartbeat of our capital is big banks like Deutsche, Internet titans like Apple and Facebook, and medical sciences companies like GSK. The expansion of co-working space is a symbol of London's dynamism and the creative economy's vibrancy. Despite Brexit, London's durability and reputation as a safe haven for investment is amazing.
"We expect more positive changes ahead, as London is poised to become a hub for scientific research and development, attracting finance from previously untapped sources." With new sub-markets forming in Nine Elms, Stratford, and White City, London's potential continues to increase.
"Leaving the European Union will be challenging, but property occupiers and investors will continue to rush to London from all over the world as long as it has excellent infrastructure and places, strong 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.