_Asian investors’ love for London shows no sign of fading

Our 2018 Active Capital report examines the flows of real estate capital around the world, and once again one of the clear trends is huge volumes of capital departing Asian markets destined for London. 

As has been well-reported, 2017 was a record year buoyed by the blockbuster acquisitions of The Leadenhall Building and 20 Fenchurch Street for just under a combined £2.5 billion.

Indeed, last year 22% of all cross-border investment from Asia Pacific was directed towards the UK, with 50% of that – around $9.8 billion – invested in London. 

Some commentators have suggested this is an unexpected boon for the Capital following the ‘Brexit’ vote, but the truth is this is a longer term trend which predates June 2016 and is likely to be a feature of the London market for many years to come. 

Apart from 2016, London has been the top market for cross-border investment from Asia-Pacific every year since 2012. Already in 2018 figures show that Central London is the biggest European market of Asia Pacific cross-border investment with $4.5 bn committed. 

With appetite showing no sign of abating, we expect the flow of capital from Asia-Pacific to London to continue for the rest of 2018 and beyond.