According to estate agents Knight Frank, overseas investors paid a total of £7 billion on property deals in London during the first six months of 2018.The largest group of buyers came from Hong Kong.
Amongst the largest property deals was the property 5 Broadgate which sold for £1 billion, and Ropemaker Place, which sold for £650 million. Plumtree Court was sold by Goldman Sachs for £1.2 billion in August 2018.
Knight Frank’s Nick Braybrook said:
“Despite the political turmoil surrounding the UK with Brexit, London is once again the most liquid real estate mark.”
Not all commercial property transactions were from overseas investments. Savills estate agents reported that UK investors spent £761 million on nine London buildings in 2018. Savills City Investment Director, Richard Bullock said that after Brexit, many financial experts feared that the commercial property market would collapse, but this has not happened, and investors have confidence in the London property market.
Many technology, media, and telecoms companies have set up offices in London and this has created a high demand for premium office space.
Foreign investors are also active in the London housing market. Hamptons International estimates that overseas investors were responsible for 35% of all houses purchased in London during the first six months of 2018.
Although there have been many large property sales, smaller investors can find less expensive commercial properties. There are many commercial mortgages lenders offering loans at good interest rates to enable investors to purchase buildings.