Non-domestic investors snapping up London officesDecember 6th, 2012 Category: Building Management
Offices in London are proving to be extremely attractive to investors based outside the UK, an expert has noted.
According to Mat Oakley, commercial research director for Savills, most of the high level investment in the capital in recent times has involved buyers from other countries.
This is particularly apparent in the City of London area, he said, as foreign nationals account for 80 per cent of investment activity in this location.
Similarly, he noted that nearly two-thirds of transactions in the West End involve non-British buyers.
"Non-domestic investors like London," Mr Oakley observed.
"As long as volatility continues in the rest of the world, London will be popular."
This is certainly good news for the economy both in the immediate area and the UK as a whole.
Since Britain is not part of the beleaguered eurozone, it is inevitable that investors looking for prime European property might find London an attractive option.
This means that even while the country struggles with its own economic woes, buildings such as large office blocks and retail spaces look set to remain in demand for some time to come.
"London has consistently been the most popular destination for cross-border investment in pretty much every one of the last seven years," Mr Oakley commented.
He predicted that the current situation in the eurozone is likely to persist for some time to come. As a result, he is confident foreign demand in British commercial property will hold up throughout 2013, with much of this interest focused on the capital.
Mr Oakley added that tenant demand in many high rise developments in London is strong at the moment, with some keen to secure space in buildings that have not even been completed yet.
He said prospective occupiers are especially tempted by the thought of being based in a location that offers "fabulous views".
If aesthetic as well as practical qualities are important to tenants, it stands to reason that many will turn to contract cleaners over the coming months and years. After all, they will be ideally placed to make sure the office space is well maintained and conveys a good impression to workers and visitors.