London retains its crown as top commercial property investment location

London retains its crown as top commercial property investment location

In a recent report by JLL, London has retained its crown as the leading city globally for commercial property investment in 2018. In fact, it was only one of two European cities that made it to the top 10 – Paris being the other one.

Many analysts fear that a no-deal Brexit will impact on this as investors wait to see what terms the UK will agree with EU before it leaves. Despite this, it is the second year running that London has led the field.

In compiling the report, JLL tracked $733 billion of commercial deals in 2018, which was a rise of 4% on 2017’s total. Here is the top 10:

  1. London
  2. New York
  3. Paris
  4. Seoul
  5. Shanghai
  6. Hong Kong
  7. Los Angeles
  8. Tokyo
  9. Chicago
  10. Washington

Although not in the Top 10, German cities did particularly well with locations such as Frankfurt, Berlin, Hamburg and Munich rising up the rankings. Frankfurt, in particular, is worth noting because it is one of the cities that stands to gain most from the UK’s exit from the EU, as some financial organisations intend to move parts of their operation out of London and into the German financial capital.

Commenting on the report, Richard Bloxam, Global Head of Capital Markets for JLL, said: “In a year when investors have had to deal with increasing populism, protectionism and political uncertainty, the appeal of real estate has continued to increase. Many investors are looking at alternative or emerging locations, as well as varying real estate property types within these cities, rather than exploring other less familiar cities.”