London office sales smash through £13bn barrier after German investment boost

Oliver Gill
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Workers In Offices At Night In London
There have been £13.4bn of office transactions so far this year, Savills said (Source: Getty)

A surge in investment from German and UK property firms has pushed London office transactions past the £13bn barrier.

Buyers from 27 different countries are active in the central London office investment market, estate agent Savills said today.

There have been £13.4bn of office transactions so far this year, some 23 per cent than 2016 and 35 per cent ahead of the 10-year average.

Read more: Office space take-up in London beat a 10-year average last quarter

German investors have deployed £2.05bn and UK firms have invested £2.4bn. This compares with £250m and £1.2bn respectively in 2016.

“The breadth of diversity in investors active in London in 2017 highlights the continued appeal of the city’s commercial real estate market as an attractive destination for capital,” said Savills central London investment team director Felix Rabeneck.

“London displays liquidity across the spectrum. Sales such as the Leadenhall Building and 20 Fenchurch Street highlight the appetite amongst Asian investors for ‘trophy’ assets. Outside of this sphere of interest, we see assets perceived as non-core attract a broad professional investor base, so long as they are priced realistically.”

Read more: London office rents will fall over the next year, experts warn

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