Overseas investors poured fresh capital into London office space in the first six months of the year, a report reveals.
According to data from Jones Lang LaSalle, some £3.1 billion was invested in office space in central London. The inflow represents of 25 per cent from the same period last year.
The rise fuelled an increase in total investment in London office space over the first six months of 2011 to £5.4 billion – up from £4.2 billion for the year ago period.
The upswing comes amid forecasts that the ongoing shortage of available offices space in the capital will push rental yields up in years to come.
Damian Corbett, head of London capital markets at Jones Lang LaSalle, said: “London remains the focus for global capital, with far eastern high net worth interest particularly evident. The last quarter has also seen a pick-up in activity from UK institutions.
He added: “Development plays are attracting strong interest, especially those with residential conversion angles in core West End locations.
“Lack of stock continues to be an issue and with no sign of investor demand tailing off competition will remain strong for good quality assets.”