Property deals worth over £100m are dominating the market in London’s West End, according to a new report from Savills.
Ten deals, totalling £2.175bn have been transacted this year, which is a record for both the number of deals in this category.
The property advisor reports that the ten £100+ transactions have made up 69% of the total turnover of the West End market during 2017.
Asian investors have been responsible for nearly half of all deals of this size during the year – in comparison to 19% in the whole of 2016.
Domestic investors are also pursuing larger plots, according to the report. Three acquisitions of over £100m from UK investors recorded until the end of May has equaled the number seen in the whole of 2016.
West End investment market driven by £100m+ deals
Savills said that the 11 transactions that took place in May totalled £583, which took the total investment in the year in the West End to £3bn.
Paul Cockburn, head of the West End investment team at Savills, noted: ‘A key characteristic of overseas demand is their willingness to target both scale and quality. With this comes the current high level of liquidity for large lots. Such is the demand of late there again seems renewed downward pressure on prime yields.’
In addition, Savills said that prime yields in the West End market remain at 3.25% for the fifth straight month.