New York pipped London in the battle for foreign investment in the year to the end of August, with a total investment of £9.3bn compared with £7.9bn in London, according to research from Savills and Real Capital Analytics.
Office investment in New York was £14bn, nearly double that in London in the first half of 2016, with the Big Apple’s Midtown taking the lion’s share (£7.4bn).
But for investors looking to let stock, the vacancy rate in the City of London remains well below the 10-year average at just 5.2% compared with New York’s Midtown where vacancy rates of 8.6% are ahead of the decade average of 7.4%.
London’s shortage, boosted by nearly three-quarters of the City’s stock being grade A, helped drive rents higher in London, with City markets registering £60.50 per sq ft compared with Manhattan Midtown’s £49.50 per sq ft.
US investors put £4bn into UK real estate in the year to August, with Canada investing £500m.
See also: North America debates: A tale of two cities
• To send feedback, e-mail rebecca.kent@estatesgazette.com or tweet @Writer_RKent or @estatesgazette
