nvestor spend on central London retail properties swelled to £680.4 million in the first half research shows, as momentum around the capital’s post-pandemic recovery continues.
Real estate consultancy Cushman & Wakefield calculated the estimated spend on property was more than double the three-year average for that period. It was also significantly above the £111.5 million recorded in the first six months of 2019 pre-Covid.
Large purchases took place in popular shopping destinations such as Bond Street, with some buyers believing the case for investing in retail real estate has now become stronger.
Values fell during the pandemic as lockdowns battered high streets and some purchasers consider pricing today looks more realistic to reflect any associated risks.
The research comes after it emerged yesterday that footfall in central London in July rose 2.6% from the prior four weeks. Growth came despite soggy weather and the cost of living crisis.
Megan Hutchinson, a associate director in the retail agency at Cushman & Wakefield added that investor appetite has also been bolstered by pockets of rental growth in top shopping areas as sentiment bounces back, and as international brands continue to target the capital.
Retailers that opened new shops during the period included beauty giant Sephora at Westfield London, and Swiss running specialist On at Regent Street.
Hutchinson said: “Leading indicators such as footfall, overall spend, and international flight numbers point to the resilience of the capital’s retail scene. London’s leading retail destinations are in high demand [with tenants] which should attract more buyers.”
Total UK retail property transactions totalled £4.9 billion during the half, exceeding the five-year average by 14.5%.