The value of central London commercial real estate transactions in the first quarter of 2009 fell by 76% compared to Q1 2008 and by 83% compared to Q1 2007 when the market was at its peak, according to C&W's latest research report issued this week.
The value of central London commercial real estate transactions in the first quarter of 2009 fell by 76% compared to Q1 2008 and by 83% compared to Q1 2007 when the market was at its peak, according to C&W's latest research report issued this week.
Around £679 mln (EUR 770 mln) of commercial property was traded in central London in the first quarter of the year against £2.83 bn in Q1 2008 and £3.934 bn in Q1 2007.
The weakness of sterling and the fall in values over the last 12 months, however, have made London property much more affordable for overseas buyers and investor interest in both the West End and City markets has increased considerably in the last few weeks.
In the City of London market, £470 mln was traded with German funds dominating activity. TMW acquired 11 Pilgrim Street, EC4 for £56 mln whilst GLL Real Estate Partners acquired Governor's House, EC4 for £70 mln. Swiss fund Affia also acquired Garrard House, Gresham Street, EC2 for £70.5 mln.
In the West End market, transactions in the first quarter were just over £200 mln which is only 13% of the turnover in Q1 2008. The average size of the 14 deals completed was £14.5 mln. The largest transactions included the purchase of Times Place, 45 Pall Mall, SW1 for £56.5 mln and Washington House, 40 Conduit Street, W1A purchased for £30 mln.
Clive Bull, head of central London investment, C&W, said: 'There is clearly evidence of more interest and more activity taking place in the West End market. Whilst transactions completed were at an all-time low in Q1, a significant number of contracts were exchanged and an even greater number went into solicitor's hands.'
