Savills: 2017 central London investment set to hit £20 billion – and could set new record

30 October 2017

Savills predicts that the total volume of commercial real estate transactions in central London during 2017 will exceed £20 billion and may end the year higher than the previous record level set in 2014 of £21.6 billion.

The international real estate advisor says that commercial property transactions in central London in the first three quarters of this year reached £14.22 billion, with buyers originating from more than 27 different countries. With the average final quarter turnover in the last five years being £6.6 billion, Savills says this puts 2017 volumes on track to easily exceed the £20 billion threshold, and could possibly set a new annual record.   

If the last quarter follows previous patterns, this would put 2017 volumes significantly ahead of the long-term annual average of £14.4 billion, says Savills, and well up on 2016, when £15.9 billion was deployed into central London commercial property.

Stephen Down, executive director and head of central London investment at Savills, comments: “2017 could be a record breaking year for London investment, and at the very least, volumes look set to break the symbolic £20 billion barrier. UK real estate, particularly prime assets with strong income streams in the capital, continues to appeal to a broad spectrum of international investors, while outside this sphere of interest there is also demand from a broad professional investor base so long as properties are priced correctly.”

 
 

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Stephen Down

Stephen Down

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Savills Margaret Street

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