London

What is your current view of the London real estate market?

Yet, as we highlighted on page 10, London remains – albeit by a whisker – the top global city for international investors, with 78% classing it as appealing (and 40% finding it very appealing). Many who believe it is overvalued still want to have prime London property in their portfolio. And the price correction already seen in London markets is clearly enough for some investors, even though analysts tend to argue that deal volumes overall won’t start to tick up until we near the end of of 2023.

As CMS real estate partner John Cumpson says: “Although transaction volumes in London are down, there is still life in the market. In addition to some opportunistic trades, there’s a continuing interest in high-quality assets, particularly as tenants are increasingly demanding buildings with the latest facilities and strong green credentials. Deals such as Munich RE’s co‑investment into 120 Fenchurch Street and Tik Tok’s pre-letting of 140,000 square feet in Farringdon, both of which we advised on, clearly demonstrate the resilience of the capital.”

Though nearly three-quarters (73%) of UK professionals believe Brexit has disincentivised international investment into UK property – a view which most global investors, especially those from Europe, share – it’s clear that there’s still plenty of life in London.