- What City investment volumes are due to hit only £3.6bn for the first six months of the year
- Why A lack of investment stock and uncertainty around Brexit
- What next More off market deals and speculative approaches are predicted
City investment is set to hit only £3.6bn or the first six months of the year, according to Savills.
This would be the worst start to a year since 2011. Only £750m of stock is being openly marketed, compared to £3.7bn this time last year as uncertainty over pricing and politics is preventing action on the part of both prospective buyers and sellers.
The adviser said that despite the plummeting volumes that “the demand and weight of money focussing on London real estate remains high, with investment volumes being constrained by a lack of available opportunities”.
So far there has been £1.85bn of off-market deals, accounting for 69% of total volumes.
Richard Bullock, director in the central London investment team, said: “Despite headwinds there continues to be healthy interest in the London real estate market. While there may be a smaller pool of assets being marketed, we are seeing a growing trend of off market deals and speculative approaches as investors look to secure attractive opportunities in the City”