Commercial property investment in the UK dropped off in the first half of 2016
UK commercial real estate investment has dropped by more than a third in the first half of 2016, according to new figures from BNP Paribas.
Investment into offices in the UK fell by 36 per cent in the first half of the year as compared to the same period last year – but BNP Paribas pointed out that 2015 was an exceptionally good year for investment.
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In Germany, investment fell by 24 per cent year-on-year in the first half.
But the total of the UK remained higher than that in Germany in the first half. BNP Paribas said the total investment volume in the UK was €28.5bn (£24.92bn) compared to €18.4bn (£16.09) in Germany.
Commercial real estate investment in France fell just three per cent in the first half as compared to last year. But at €9.7bn (£8.48bn) the total investment was relatively small when compared with the UK's and Germany's.
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Given the size of the investment contribution from Germany and the UK, the drop in investment in these countries "has severely impacted the European total", BNP Paribas said.
The UK's decision to leave the EU has left many speculating that cities in Germany and elsewhere could become new European capitals for financial services.
London came third in a report on the top cities for property investment released today by Cushman & Wakefield, however, suggesting it will be difficult to beat as a European champion.
Cushman & Wakefield said in the report:
Brexit has the potential to change the global city hierarchy as other cities vie to take advantage of any uncertainty among London occupiers and investors.
However, any gains are likely to be thinly spread and no single city will win out.
The only two cities to beat London for property investment were New York and LA. Cushman & Wakefield said London didn't come further up the rankings "due to Brexit concerns and high pricing before the EU referendum."
If you need proof that London has the best commercial property in the world, check out this video of a tree being hoisted up the Walkie Talkie: