London office space investment up 40% from 2011

The latest figures realised by Real Capital Analytics show that investment in London’s office space is up 40% from last year.

According to the report, there has been “a wall of Asian money” invested in London’s office space in 2012, which is responsible for the surge in demand.

So far this year, £14.7billion has been invested in London’s office space, a stark contrast to the £9.7billion in New York, - its closest rival - and £8.5 billion in Paris, according to Evening Standard.

Far-Eastern based businesses looking to establish a foothold in Europe are increasingly targeting London as a base for their operations, which is in turn helping to return its markets to pre-recession levels.

Investment from companies in Malaysia, Singapore, South Korea and China has boosted demand in London’s commercial office space market, most notably in the City, Docklands and West End districts.

According to Evening Standard, the “most eye-catching deal” was the £400million paid for Battersea Power Station site in September.

Its Malaysian developers intend to place major office, residential and shopping space within the iconic building.

Tony McCurley from GM Real Estate said: “There is huge interest in London from across Asia/Pacific and we expect this to continue.

“This is just the first wave; there are many others to follow.”

Mr McCurley said London is benefiting from the ‘wait and see’ approach on Paris and Frankfurt, adopted by many investors in reaction to the eurozone crisis.