London office space ‘is in greatest demand’
A surge of investment in London office space means the city is once again the world’s top location for businesses seeking new premises.
Latest data from Real Capital Analytics reveals that £14.7 billion has been invested in the London office market so far in 2012 – up 40 per cent on 2011.
This compares with £9.7 billion in New York – the city’s closest rival – and £8.5 billion in Paris, reports the Evening Standard.
According to the news provider, “a wall of Asian money” is responsible for the surge in demand for elite London property.
Businesses from the Far East are increasingly targeting London – eager to establish a foothold in Europe – helping the market return to pre-recession levels.
Strong demand for commercial property is being seen from Malaysian, Singaporean, South Korean and Chinese investors.
A number of London business districts are benefiting – with demand for office space rising fast in the City, the Docklands and the West End.
The Evening Standard claimed that the “most eye-catching deal” was the £400 million paid for the Battersea Power Station site in September.
Malaysian developers are planning to transform the iconic building into a major office, residential and shopping complex.
Speaking to the news provider, GM Real Estate agency’s Tony McCurley said levels of interest in London office space are only set to grow in the coming months and years.
“This is just the first wave, there are many others to follow,” he claimed.
“There is huge interest in London from across Asia/Pacific and we expect this to continue.”
Mr McCurley said the eurozone crisis is leading many investors to adopt a ‘wait and see’ approach on Paris and Frankfurt – and London is the main beneficiary of this.