Property investors may be nervous about Britain leaving the EU, but they have still spent nearly £50 billion on central London buildings since 2017, according to a new study.
Real estate research firm Datscha calculated that £47 billion of commercial property in the City, West End, Midtown and Canary Wharf was sold between January 2017 and June 2019. That includes offices, shops and pubs.
Buyers from Asia were dominant, accounting for 33% of the spend, followed by domestic investors.
Investor appetite comes despite concerns Britain’s vote to leave the EU could prompt some businesses to downsize in London or abandon the capital. In that scenario landlords could be left with empty properties and less rental income.
Deals this year have included Citigroup’s near £1 billion purchase of its London HQ at 25 Canada Square. Among smaller transactions are Hong Kong money being used to fund a £81 million purchase of an office block overlooking St Paul’s Cathedral.
The latest data comes a week after it emerged that investors slashed spending in the third quarter of 2019 ahead of Brexit.
Lesley Males, Datscha’s head of research, puts the recent fall down to less properties being on the market, as sellers wait to see what pricing looks like after October 31, and less big sales to Asian buyers.
Males said the total data largely shows “resilience in the London market throughout a long period of political instability”.
