Overseas investors form majority of central London investment

A record 81% of investment in central London has come from overseas investors so far this year, according to Savills research. The rise from 72% last year came as investment reached £7.2bn by the end of May – up 0.3% year-on-year and a sign that total annual figures could top £15bn for the fifth year in a row. Although City and West End yields soften after global market shocks, Savills expects yields to remain stable due to the weight of investor demand for secure income. City yields have already fallen 25 bps since January. By contrast, yields rose 250 bps between July 2007 and the end of 2008. Source: Savills