Q4 2013 central London office investment reached highest quarterly volume on record

Central London office investment volume in Q4 2013 reached £7.46 bn, 24% higher than Q3 2013 and the highest quarterly volume on record. This pushed the 2013 annual investment volume to £20.72bn exceeding all previous years, according to new research from BNP Paribas Real Estate, the leading property adviser.

BNP Paribas Real Estate’s head of City investment, Richard Garside, said: “2013 was another very positive year for the Central London investment market. The last quarter featured two exceptionally large transactions with More London and Broadgate deals jointly contributing a whopping £3.4bn to the year’s total investment volume. The continued demand from investors has sharpened prime yields from 5% to 4.5% in the City and 4% to 3.75% in the West End during 2013.”

Throughout the year, purchases by international investors still predominated, accounting for over two thirds by volume. Far Eastern investors were most active in the Central London office market in 2013, representing 20% of the market, Middle Eastern investors were also very active representing 17%, German investors represented 9% and North American investors represented 8% of the market in the last year.