Investment volumes in London jumped to £4.1bn (€4.76bn)  in the final quarter of last year, according to CBRE.

The advisory firm’s latest Property Perspective report found that Q4 was the strongest quarter of 2016, pushing the annual total to £13.1bn.

CBRE said the overall result for 2016 was, however, less than the investment total for 2015.

Overseas investors accounted for 70% of total volumes in 2016, their most active year since 2013.

Chris Brett, head of international capital markets at CBRE, said: “Previous market uncertainty following the referendum result certainly showed clear signs of having subsided in Q4 2016 and overseas buyers returned to London with force.

“Not only did the number of transactions increase but the number of sizeable transactions was also much higher, highlighting investors’ confidence in London and its status as a global safe haven.”

Brett said London remains a key target for those seeking wealth preservation strategies.

“We expect the fall in sterling to continue to make UK real estate remain particularly attractive to overseas investors over the coming year.”

Asian buyers were the most active party, accounting for 25% of total volumes, closely followed by Middle Eastern investors.

Research from Cushman & Wakefield found that around £8bn of around £14bn of UK commercial property deals in the market on the day of the EU referendum in June last year have now completed.

The firm said 54% sold and a further 15% are under offer, with 25% withdrawn and 6% of deals still in the market.

More than 200 office, retail and industrial assets have transacted, accounting for 45% of total investment activity in the second half of 2016.

Jason Winfield, head of UK investment at Cushman & Wakefield, said: “By tracking deals from before the nation went to the ballot box in June we have gained a unique picture of how the market has subsequently reacted to the vote for Brexit.

“Deals have taken longer to complete and a greater proportion have been withdrawn but, on the flip side, values have held up remarkably well reflecting the UK’s strong fundamentals.”

Despite the delays, the average discount between offer price and sale price is 3%, Cushman & Wakefield said. 

Winfield said it is too early to know the full implications of the UK’s decision to leave and how the departure will manifest itself in occupational markets.

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