Central London is the most active commercial property market in the world, according to commercial estate agent DTZ.
Cross-border investment into the UK capital’s centre totalled nearly $18 billion last year, according to DTZ’s Money into Property report, three times the level achieved by Manhattan, the second most active financial capital.
The rising number of deals also underlines the readiness of UK investors to sell property as values rise, according to analysts.
Interest in London made the UK the most liquid market in the world last year, with a liquidity ratio of 9.2%, followed by Singapore, with 7.6%.
According to DTZ, the amount of money invested in global commercial real estate rose 4% to $12.9 trillion last year.
Institutional investors continue to favour prime property, although DTZ notes 70% of lenders are prepared to finance purchases of secondary assets as memories of the credit crisis recede. Sentiment among lenders has seen a “remarkable improvement,” according to DTZ.
The rise in commercial activity coincides with a boom in UK residential real estate transactions, which has triggered concern from the Bank of England. The Council of Mortgage Lenders today confirmed that UK loans were up by 30% by volume and 47% by value over the year to April.