UK investment deal volumes fell to £5.8bn in Q2 2011 from £8.5bn in Q1. According to The Property Archive data, the most active investors remained funds, which acquired over £2.2bn of mainly offices, plus retail and hotels. Overseas buyers, led by Far Eastern investors, spent £1bn in central London.
Jones Lang LaSalle’s Q2 deal figures totalled £6.6bn, down 24% from the £8.7bn of deals recorded by the firm in Q1. Robert Stassen, head of EMEA capital markets research, said London and regional markets were polarised. “Investor activity in the capital in Q2 2011 amounted to 58% of total UK volumes and was heavily skewed toward offices.”
JLL added that despite the limited supply of London offices, investors still appear reluctant to explore opportunities in the secondary market. The UK’s share of Europe’s investment market fell from 35% in Q1 to 30% in Q2. European volumes also shrank, but activity in the first half or 2011 was still up 17% on the first half of 2010.