An article in the Financial Times on April 8 highlights the demand for Property in London, especially in the West End. While the article states that overall value of transactions fell by 31% over the last quarter – from £3.98 Billion to $2.75 Billion in commercial proper sales – it also states that 51% of purchases in the West End were by overseas investors, and 71% of overall commercial property sales in London were to foreign buyers.
According to the article, US, Middle Eastern and Asian investors make up a large percentage of the foreign investors. The decline in transactions was attributed to the shortage of available commercial property in central London. But this shortage of properties did not dull the demand – analysts are seeing profit taking by viable commercial property owners, and foreign investors are willing to pay the marked up prices.
The article noted that much of the total sales in London were made up of a few very large deals. The sales of Ropemaker Place for £472 million, Canada Square for £383 million, Palestra on the South Bank for £225 million were all to foreign companies. Additionally 151 Buckingham Palace Road was sold for £205 million and 17-18 Old Bond St. sold for £90 million, both to foreign companies.
