Overseas investment boosts London office market

A boost in overseas investment has increased the level of spend on central London offices by 22% in the first half of this year.

Research by property agency Jones Lang LaSalle shows investment in central London offices grew to £5.4bn in the first six months of the year, compared with £4.2bn over the same period in 2010.

A 54% growth in investment from overseas partly accounted for the jump. Investment from outside the UK stood at £3.1bn in the first half of the year, up from £2.5bn.

The research confirms the growing importance of foreign investment to development in the capital.

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.

“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.”