Yahoo Finance Investor spend on London office buildings increases in the City, despite WFH still being in place
Investor appetite in London for City office buildings looked to have reached its highest level so far this year in May, with over £550 million of transactions done.
Interest for sites in the Square Mile comes despite many buildings still be much emptier than normal due to working from home guidance, and despite some firms looking to reduce office space.
Some buyers are betting that occupier demand will hold up for modern and environmentally-friendly workplaces.
According to property agent Savills, £558.5 million of sales were agreed last month. It said that marks the highest May turnover since 2018.
That was also the highest monthly figure so far in 2021, helping total City investment volumes for the year to date reach £1.37 billion across 20 transactions.
Purchases in central London this year include a consortium led by Wing Tai Properties Limited, a Hong Kong based firm, agreeing a £255 million deal for a office block near Chancery Lane station.
Stephen Down, head of central London investment at Savills, said: “Investors are positive about the long-term future of London offices, particularly as the pricing of assets is currently highly competitive with other European countries.”
Bosses are drawing up post-pandemic office plans. Some companies are looking to embrace remote working longer term, although a number have pointed to offering staff a mixture of home and office hours.
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