Britain’s continued position as a focal point for Asia-Pacific investors, particularly London’s continued attractiveness, have kept investment volumes strong in 2016 with £2.8 bn (€3.55 bn) invested in London alone in the first quarter, according to advisor Savills.
Chinese investors were the most active by value, completing five deals in the capital worth a combined £1 bn in Q1, although Singaporean investors transacted the highest number of deals; 11 worth a combined £757 mln.
Savills forecasts that overall total investment volumes from Asia-Pacific countries into London in 2016 are likely to be down slightly on 2015’s when total investment flow reached circa £6.7 bn.
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 Asia-Pacific nations may, however, decline due to various issues, most notably capital controls being implemented within certain countries.
'The UK and particularly London continues to attract significant volumes from Asia-Pacific investors tasked with finding an international home for capital. With total Asia-Pacific 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,' commented Rasheed Hassan, head of Savills cross-border investment. '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 Asia-Pacific investors.'
