Britain’s continued position as a focal point for APAC investors, particularly London’s continued attractiveness, have kept investment volumes strong in 2016 with £2.8bn (€3.5bn) invested in London alone in Q1, according to international real estate advisor Savills.
Chinese investors were the most active by value, completing five deals in the capital worth a combined £1bn (€1.26bn) in Q1, although Singaporean investors transacted the highest number of deals; 11 worth a combined £757m (€953.4m). Savills forecasts that overall total investment volumes from APAC countries into London in 2016 are likely to be down slightly on 2015’s when total investment flow reached circa £6.7bn (€8.4bn).
Looking forward to 2017, Savills forecasts that Chinese investment volumes into the UK are likely to continue to be stable, as will volumes from Singapore and Hong Kong. Volumes from other APAC nations may however decline due to various issues, most notably capital controls being implemented within certain countries.
Speaking yesterday at the London Real Estate Forum, Rasheed Hassan, head of Savills cross border investment, says: “The UK and particularly London continues to attract significant volumes from APAC investors tasked with finding an international home for capital. With total APAC volumes in the capital likely to be down slightly on 2015, although still very healthy, and a finite supply of prime central assets available, we are increasingly seeing investors looking further afield towards outer London and key regional assets as well as mainland Europe. Nonetheless, London still provides a variety of opportunities, such as long term income streams, redevelopment opportunities and mixed-used schemes, and the swift transaction times and liquidity of the market which appeals to APAC investors.”
