Demand for City offices to remain strong after record-breaking 2017

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Commercial investment in the City hit a new high in 2017 (Source: Getty)

This year is set to be another stellar period for investment in the City of London, after 2017 set a new record.

Total annual commercial property investment volumes in the City reached £12.6bn, beating the 10-year average by 57 per cent according to real estate adviser Savills.

Volumes during the first three quarters of 2017 alone reached £8.5bn, with the rise in turnover driven by an increased demand for "trophy assets".

Overseas buyers accounted for much of the activity, with investors of more than 28 nationalities acquiring real estate in London.

Read more: UK commercial property volumes to exceed £50bn in 2018

More than half of total City turnover is now accounted for by Asian buyers, compared to the 14 per cent attributable to European buyers and 12 per cent to UK.

Richard Bullock, director of the central London investment team at Savills, said that demand for the "safe haven" of Lonon property was likely to continue this year.

“2018 has continued to see significant interest from international investors, many of whom are looking to diversify capital and preserve wealth outside their domestic markets," he said.

"As such they’re targeting the relative safe haven of the UK, especially London; the most liquid real estate market in the world. Looking ahead, we anticipate similar levels of demand this year as London remains good value compared to other major cities in Europe and Asia-Pac which should lead to strong pricing being achieved for the very best buildings”.

Read more: A record level of investment in London offices came from abroad last year

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