INDUSTRY NEWS

London ranked second for foreign investors looking into office space

The UK’s capital is the second most popular area for commercial investment according to a new survey – only out muscled by New York for the top spot.

According to the research from the Association of Foreign Investors in Real Estate (AFIRE), London was the only non-US metropolis to feature in the top five.

Whilst New York and London ranked the same this year as last, the trio of San Francisco, Washington DC and Houston -  the three other cities to make the top five list – made for somewhat of a shakeup on last year. San Francisco jumped from fifth to third, Washington DC slipped from third to fourth, and Houston came in from an unranked position.

Conducted in the fourth quarter of 2012, the survey saw the participation of all of AFIRE’s almost 200 members.

The UK capital proved especially popular with Asian investors last year, with a number of big money deals including from representatives from China, Korea and Malaysia.

Particularly noteworthy purchases included the £400m investment from Malaysian firms into the redevelopment of the Battersea Power Station and the Chinese Investment Corporation (CIC) purchase of Deutsche Bank’s £245m City of London headquarters.

Suggesting that this investment is set to continue in the future, representatives from all three nations are rumoured to be battling it out for the prime London office space at Chiswick Park business park, in a deal potentially worth upwards of £800m.

While London remained a popular choice, faith elsewhere in Europe has dropped with around 80% of AFIRE’s survey respondents voicing concerns over the likelihood of  many parts of Europe being in recession this year.

On a more national scale, in regards to countries providing the most stable and secure real estate investments, the U.K. retained its number five ranking and rose from forth to third in terms of countries providing the best opportunity for capital appreciation.

News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.

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