Central London office investment activity increased in Q2 2024, although H1 activity was down by more than 50% on the long-term average, according to new data from Savills.
In Q2, 50 assets traded generating turnover of £1.54bn – up 12% on the Q1 2024. This brought H1 investment turnover to £2.9bn, which is down 57% on the 10-year long-term average.
Savills said there had been a scarcity of large-scale trades in H1 2024, which has resulted in lower levels of turnover, reflected by the average lot sizes traded so far this year. In the West End, the average lot size traded was £31m and in the City it was £23.3m.
West End Investment turnover hit £2bn, which was up 15% on H1 2023, but 40% down on the long-term average. The number of assets traded during H1 was up 30% on the five-year average.
UK investors dominated activity during H1, with 33 of the 45 assets acquired by UK purchasers at sub-£25m levels.
Richard Garside, head of Central London investment at Savills, said: “A lack of larger £100m plus trades in H1 has depressed volumes significantly, but it’s reassuring to see that the number of transactions creeping back up and a greater depth of interest in the stock that is currently available. With interest rates expected to continue declining, the ongoing strength of the occupational market and with the general election behind us, London becomes an even more attractive city for investors, and this should result in a more positive second half of the year.”
