London has second best year for property investment on record

Property transactions in London reached a total of bn in 2014 – the second highest total on record.

According to commercial services firm DTZ, investment accelerated towards the close of the year, with bn invested in property in the capital in Q4 alone – the second busiest quarter since records began.

Whilst 2014 still fell short of 2013’s transacted total of bn, the trend towards growth continued.

Nearly two thirds of the transactions completed in the capital in 2014 were from international investors. North American and Asian Pacific investors led the acquisitions with 22% and 21% of purchases respectively.

With bn currently lined up for investment in Europe, London has seen continued interest from investors with strong demand from private and institutional purchasers. Commercial real estate in the capital has seen particular interest, with few other European locations able to offer the same space and liquidity on prime assets above m.

Economic conditions in the UK property market have now shifted to favour landlords as the recovery continues to move forward and a lack of development affecting the balance between the supply and demand of commercial property locations.

This shift means that rental rates will begin to rise and supply will shrink, offering prospective purchasers an excellent opportunity for capital appreciation in the months and years ahead.

The attractive nature of London property investments has also had a positive impact on the rest of the UK, as international investors look towards the regions at other investment opportunities.