Private equity increases share of London office market with 11% of acquisitions already in 2024

Private equity has accounted for 11 per cent of acquisitions in the London capital market year to date, and account for a quarter of deals that are currently under offer, according to latest data from Colliers.

The figures, which look at London office transactions over £10 million, show that private equity has increased its market share year on year; accounting for four per cent of purchases for full year 2022 and 6 per cent for the entirety of 2023.

Colliers’ tracking of deals that are currently under offer indicates that the amount of capital from private equity sources on the cusp of being deployed amounts to approximately £421 million across the London market. This is after the continued dominance of private capital taking advantage of the limited buyer pool – accounting for 35 per cent (over £600 million) of transactions under offer.

In addition, appetite from private equity houses is growing, with active bidding from these investors totalling £791 million since Q4 2023 – a stark comparison to the £524 million private equity investors invested in the whole of 2022.

Christian Capocci, associate director in the London Capital Markets team at Colliers, comments: “Although recognising that overall turnover has decreased, we have witnessed a proportionate increase in private capital entering the market. The market is currently creating an opportunity for private equity buyers who can capitalise on the low competition within the buyer pool and the drop in pricing aspirations, providing the environment this group prefers – low pricing and potentially high returns.”