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Investment in commercial property in Central London fell 65% to only £6.8 bn in 2008, down from 2007's record figure of £19.4 bn, according to international property services firm Cushman & Wakefield.

Around £3.4 bn was invested during 2008 in the West End market which includes Mayfair and Victoria. This was a fall of 41% on 2007's total of £5.8 bn. In the last quarter cash rich private investors dominated activity investing £67.8 mln in this district. In the City & Docklands market, investment fell markedly more. 2008's year end total was £3.4 bn down a steep 75% from 2007's total of £13.6 bn.

'London's West End is a market which has traditionally shown most resilience to swings,' said Clive Bull, head of Central London investment at C&W. The district saw a total of £209 mln transacted in the last quarter, which compares to some £690 mln for the previous quarter and £1.325 bn for the same quarter in 2007. 'The deals that have been completed include the purchase of 1 Old Bond Street, reflecting a yield of approximately 3.55% and 160 Piccadilly at a yield of approximately 4%. The majority of the transactions have been carried out by private investors using a high proportion of equity given the continuing lack of debt available.'

He added: 'Toward the end of the quarter we saw signs of opportunity funds from both the UK and overseas taking a much closer look at the West End market as yields continue to move out. Currently there are a number of high profile buildings in the West End under offer although not, as yet, exchanged or completed.'

Bill Tyser, head of City investment at C&W said: 'Investment into the City and Docklands market of around £3.4 bn reflects something in the order of 25% of the turnover achieved in the year ending 2007 and more akin to the level of turnover achieved at the beginning of this decade. Of this turnover, around one quarter has been transacted by German funds, who, for the time being, have largely drawn back from the market since September.'