Investors are still targeting more than £40bn of equity at central London real estate, according to Jones Lang LaSalle. The agent said at MIPIM this month that this represents more than 80% of an estimated £52bn of capital chasing UK property.
Chris Brett, director and head of JLL’s London-based international desk, predicted that this year Asian investors would take over from Middle Eastern buyers as the largest investor base in London.
“Overseas demand will remain high for several reasons: rising rents, selective bank lending, low interest rates, overseas political unrest and weak sterling,” he said. “London will see capital coming from China, Indonesia, Thailand and Taiwan, in addition to the Hong Kong, Singapore, Malaysian and Korean investors already here.”