Real Estate Investment in London

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Alibek Issaev Shares Real Estate Investment in London


Welcome to the Alibek Issaev blog. In today's blog, we share why London still retained its title as the world's top destination for investment in commercial real estate.

Alibek Issaev
According to Knight Frank's London Report, London retained its title as the world's top destination for investment in commercial real estate in 2018. London remains by far the biggest global destination for investment in real estate, despite ongoing uncertainty around Brexit, with £16.2bn ($21bn) invested in the UK capital's commercial offices in 2018. This compares to £14.3bn ($18.5bn) invested in Manhattan, £12.1bn ($15.6bn) in Paris and £8.4bn ($10.8bn) in Hong Kong. While total investment volumes for Central London were down slightly on 2017 (£16.8bn, or $21.7bn) the average deal size rose to an all-time high of £81.5m ($105m) in 2018.

Global Commercial Investment Highlights of 2018 Include:
  • Central London commercial offices attracted £16.2bn ($21bn) of investment in 2018, more than Manhattan, Paris and Hong Kong
  • Greater China remains the largest investor in London real estate
  • £40bn  ($51.8bn) of global capital actively looking to invest
Greater China remains the largest source of investment in Central London real estate, despite new capital restrictions imposed this year, accounting for £3.48bn ($4.5bn) in 2018 and 21% of all investment in Central London offices last year. Although Greater China remains London's biggest source of capital, the total volume of investment from the region was down 51% on 2017, when Central London saw a record £7.12bn ($9.2bn) invested into commercial offices from Chinese investors.

2018 saw South Korea significantly increase its investment in Central London, with £2.56bn ($3.3bn) invested in the capital, an eight-fold increase on the £300m ($388m) invested in 2017. Capital from the Far East as a whole accounted for 47% (£7.67bn, $9.9bn) of all investment in Central London offices in 2018.

Although 2019 presents ongoing challenges, international investors remain undeterred and still identifies £40 billion ($51.8bn) still targeting London this year, with some seeing the political turbulence and currency weakness as an opportunity, combined with the strong occupational market fundamentals.

Whilst, according to Knight Frank's Global Capital Tracker there is £40 billion ($51.8 bn) of capital looking to invest in commercial real estate, with Greater China the biggest potential investor in London, with £10bn ($12.9bn), or 25% of the total, looking to invest in 2019.

Alibek Issaev is an extremely successful property investor. He helps guide people towards building a large and strong investment property. Learn more about Alibek Issaev online here. Connect with Alibek Issaev on Facebook for more tips on things like increasing your rental income, how to finance your property and interest rate updates. Read Alibek Issaev on the Trade Arabia page here.

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