Study: Overseas investors own majority of Square Mile offices

25 November 2011

Written by Jeni Browne

Large amounts of commercial space in London's square mile have been bought by overseas investors, a study has found.

Who Owns the City, which was published by Development Securities and researched by the University of Cambridge, found 52 per cent of the Square Mile's office space is owned by foreign individuals, compared with eight per cent in 1980.

Commercial mortgage holders may wish to purchase these assets as well, as the investigation found this market has shown "remarkable resilience" to the global financial crisis, with people from abroad accounting for 66 per cent of all acquisitions in the area since 2008.

Established property firms, livery companies, institutions and other traditional owners of this real estate have experienced a marked decline in ownership levels, from 29 per cent in 2005 to 17 per cent in 2011, the study found.

Businesses ought to consider setting up in London regions such as St James, Victoria and Mayfair, British Council for Offices chief executive Richard Kauntze recently advised.