Some £722 mln (€797 mln) of development land changed hands in London in the second quarter of 2017, representing a 48% increase on Q1 and the strongest three-monthly figure since before the EU referendum, according to figures from adviser CBRE.
The quarterly uplift was largely driven by overseas developers, who represented 83% of land buyers in Q2. They were focused mainly on large lot sizes for mixed-use development.
Three land deals over £100 mln were recorded in the quarter, including the sale of Vauxhall Square to Chinese developer R&F properties and the sale of Elizabeth House at Waterloo (pictured) to Slovakian group HB Reavis.
Looking ahead, the sales pipeline remains strong, CBRE said, with £1.5 bn of land expected to complete before the end of the year, almost entirely earmarked for mixed-use development.
Peter Burns, managing director of UK development at CBRE, commented: ‘We expect overseas investors to remain a dominant presence in the London land market attracted by the capital’s underlying strengths whilst also capitalising on the exchange rate benefits. As this quarter has shown, there is considerable appetite for larger lot sizes from overseas buyers as well as significant demand from both domestic and overseas buyers for small lot sizes in prime locations where supply is constrained.’
