Despite the economic slowdown in the first half of the year, investment activity recorded significant growth. This growth was predominantly driven by strong transactional activity in London, which bounced back after a subdued 2016.
Overseas investors continue to flock to London, and the office sector in particular. Their appetite for large lot sizes is a vital driver of demand. In contrast, regional investment volumes slowed in H1, although several regions did record strong rises and we expect a strong H2.
Of the sectors, the industrial sector recorded the largest rise in volumes, aided by the trading of some large portfolios. Market momentum comes on the back of a strong occupational market, characterised by strong rental growth, falling supply and limited speculative development.