London is becoming the leading city in the investment activity in the world. Several surveys and newspapers have risen for the fourth consecutive quarter with 2.78 billion pounds transacted in the main markets of the West End, City and Docklands during 2Q, 2010. This figure shows a 94 percent increase annually and a 70 percent on the preceding quarter.
In an additional boost for the market, on Friday it was said that the Mitsubishi Estate firm has sold the Bow Bells House in the City for about 140 million pounds to a foreign private investor so as to unlock funds for the new expansion and development drive in the capital. The foreign investors started to dominate the market, which is accounting for sixty percent of the deals. It appears that with the financial uncertainty, still obvious that the London property is considered as refuge for equity. This year about 4.45 billion values of property deals have taken place in central London, which is more than twice that for the same period last year which was about 2.11 billion pounds.
High growth in the rental growth, the uncertainty of the economic environment and the devaluation of the sterling pounds against the US dollar are all making the London property viewed as a transparent, liquid and mature market, attractive to foreign investors. Asian and Middle East investors mainly active, as the Saudi Arabian Olayan Group bought the Knightsbridge estate that makes up nearly one third of the West End investment in 2Q.
The City and Docklands market saw 1.1 billion pounds values of properties transacted in twenty two deals during 2Q 2010, this was a jump from 0.56 billion pounds in 1Q and a 57 percent increase annually. There is also some 1.1 billion worth under offer that is expected to complete in Q3.Read More →