Content category: commercial landlord insurance
Investment in the London office market has increased significantly in recent months due to a rise in interest from overseas - taking activity back to its pre-credit crunch levels.
According to James Roberts, head of central London research at independent global property consultancy Knight Frank, the second quarter of 212 saw £3.9 billion invested in central London work spaces - which was the highest sum injected into the sector since the third quarter of 2007.
Mr Roberts claimed there is currently a "united nations" of foreign investors interested in purchasing London offices, with 86 per cent of sales during the second three-month period of the year by transaction value to overseas buyers.
In addition, he said although the West End continues to be the most popular spot for individuals - due to locations such as Mayfair and St James's Park - the market continues to have constraints.
The expert explained: "Many of the investors who buy there rarely sell, which limits supply. There is a lot of interest from wealthy individuals who want the prestige of owning a building on Piccadilly or Berkeley Square."
His comments were made after CBRE reported the UK's commercial property performance in October mirrored that of the previous month, with total returns of 0.2 per cent and values falling by 0.3 per cent.
In addition, year to date capital values fell by 2.9 per cent, as Central London remains the key performer within the market - as the city's values are still growing, while the worth of buildings across the country continue to fall.
"Also, [some] districts are conservation areas so you cannot rapidly increase the stock by building skyscrapers for instance, so the supply constraints will lead to Mayfair and St James's buoying the West End figures going forward," Mr Roberts explained.
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