It's been a traumatic year for the UK market; the general election and Brexit have caused huge uncertainty amongst both buyers and sellers and caused big drops in homes entering the market and slowed house price growth.
Focusing on London, The Telegraph have revealed that £48.4 billion of global capital is currently targeting London, which is £8 billion more than a year ago.
Taking information from the Knight Frank Global Capital Tracker, there is £12,73 billion targeting London from Hong Kong & China, which is an increase of 25%. The Asia Pacific region have increased their London targeting 35% to £12.5 billion. There's also a 29% increase on targeting from Continental Europe reaching £5.3 billion.
Office space is in higher demand in London too, 13% higher than the long-term average. Companies are looking for 9.6m square feet of space.
Why is global capital targeting London so heavily?
Now that the UK is past it's uncertainty, there's uncertainty elsewhere in the world:
- The Middle East is experiencing turmoil in Iran
- Hong Kong is going through continued unrest
- China is in a trade war
- German and French economy appears to be stagnating
UK companies are full steam ahead
Thanks to the certainty in the UK market, despite Brexit not being complete, UK companies are relocating their head offices to London after multiple years of deliberation.
Some of these companies are:
- BP - looking for new offices in the capital
- McKinsey - moved from Jermyn Street to Holborn
- Linklaters - moving just a few hundred yards in the City
These companies are relocating offices in order to move somewhere more attractive to future employees. The condition and location of an office can play a big part in where someone wants to work. It can also help indicate the status of a company.
In West London, White City is attracting large UK companies. This is because it is home to Imperial College London, and a beautiful redevelopment of the BBC's television centre. Companies this has brought in are ITV, Publicis, Novartis, and L'Oreal.
British Land is planning a campus of 53 acres in Canada Water, on the Jubilee Line between Canary Wharf and London Bridge. This area will consist of homes, offices and shops. It is expected to attract more companies to relocate.