The City and West End office investment markets are expected to have a record year in 2015, according to JLL.
The City is expected to see £11.3bn of transactions and the West End £6.5bn. Total volumes for central London are due to stand at £18.5bn, taking in £700m of sales in Docklands.
The overall total was boosted by Taiwanese investors, which accounted for £934m of purchases across three deals.
Prime yields stand at 3.5% for smaller lot sizes in the West End and 4% in the City, both down 25 basis points over the year. Prime City values are up by 19% for the year and prime West End values up by 12%.
Damian Corbett, head of central London office capital markets at JLL said: “Continued healthy market turnover is testament to the depth and liquidity of the London market. Some investors have taken the opportunity to realise profit, which is to be expected after a period of sustained growth.
“However, there continues to be an abundance of equity capital seeking to be placed in the world’s leading real estate markets, as the recent rise of Taiwanese investment illustrates, and we expect London to continue to attract a broad base of global investors in 2016, with Chinese investors likely to return in force.”
