So have we reached the top of the market as some people fear, or is the fall in activity merely a temporary blip caused by the shock result of the EU referendum last June?
It’s a trend that many experts expect to continue throughout Q1 2017. Chris Brett, head of international capital markets, UK, at CBRE, reports there is currently strong demand for London real estate from investors in Singapore, Abu Dhabi, South Korea, Saudi Arabia and Hong Kong. He notes that there is also demand from German investors and he anticipates greater interest over the course of 2017 from South African investors and investors from Japan thanks to new legislation that allows JREITs to invest offshore.
As a result, Brett is bullish about the short to medium term investment outlook. “The momentum experienced in Q4 2016 has certainly carried into 2017 and the UK remains a major focus for global capital. For the foreseeable future this looks set to continue, that is until the political landscape potentially interrupts our world yet again,” says Brett.