London continues to be the leading light in the UK's commercial real estate revival, with new figures showing that investment in the sector increased by 34 per cent year-on-year in the first three months of 2011.
The encouraging news was reported by global property consultant Cushman and Wakefield.
In total, the level of transactions for the first quarter was around GBP 2.19 billion, up from GBP 1.63 billion a year previous. But, despite the yearly rise, sales were down 24 per cent from the level of transactions seen in the final three months of 2010.
Overseas investors continue to lead the market, accounting for over 53 per cent of deals in the City and over 55 per cent of deals in the West End.
"Whilst the demand for very large investments is less, it is still active and is a reflection of the international view of London as a relatively stable property market against the geo-political unrest and natural disasters experienced in recent months," said Bill Tyser, head of City investment at Cushman and Wakefield.
According to the firm, the outlook for quarter two remains strong, with demand from both domestic and overseas investors buoyed by the fact that London is perceived as a safe haven for investment.