Chinese interest in London property has grown exponentially over the past five years, and 2015 is set to be the biggest year yet.
CBRE has forecast that Chinese investors could spend as much as £4.5bn in the capital this year as more and more investors break into the market.
So far, just three Chinese life insurance firms have completed deals in London, including PingAn, China Life and Taikang Life, but CBRE says that 10 such investors are actively looking for UK deals.
Based on the average lot size of Chinese insurance company deals so far, the insurers alone could spend as much as £3.5bn this year.
Companies such as Anbang, which this month completed the $1.9bn (£1.3bn) acquisition of the Waldorf Astoria hotel in New York, are among those expected to make an entrance in 2015.
CBRE executive director and head of central London capital markets Simon Barrowcliff said the £1.4bn spent by Chinese investors last year “could have been a lot higher” but for a handful of deals that failed to complete.
“We expect to see more this year of those investors that have been looking to do deals, so we are confident levels of activity will be higher,” he said.
jack.sidders@estatesgazette.com
China special:
• Briefing: Chinese investment – a bigger piece of the pie
• Finance: View from China – Kaisa-ra sera
• 2015: A year of promise and prosperity
