Commercial investment volumes into the City of London in January reached £572m – an 80% year-on-year rise and the best January turnover since 2016, according to data from Savills.
The figure was a 55% increase on the volume recorded for the whole of Q4 2022.
Overall investment volumes were 13% above the 10-year average for the month at £507.61m, despite the precarious economic conditions.
It found eight deals were transacted during the month and a further 16 assets, worth a combined £1.67bn, are under offer. This was bolstered by Chinachem Group’s acquisition of the long leasehold in 1 New Street Square, EC4, for £349.5m, a deal the agency advised on, for a net initial yield of 4.71%.
The agency also noted that the pipeline remains strong, with around £3.3bn of assets available at present.
Felix Rabeneck, director in the City investment team at Savills, said it was the strongest start to the year in the City for eight years.
He added: “The deals we have seen demonstrate London’s position as a top-tier global city for international investors and provide much-needed clarity as to where prime pricing may land, which should encourage other buyers. That being said, we do anticipate that certain investors will remain cautious as the impact of Q4 valuations and upcoming debt events are felt by some.”
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