U.S. real estate investors are buying up commercial real estate across London at a rate not seen in nearly a decade, according to new data from BNP Paribas.
Reuters reported U.S. investors spent $2.4 billion on London commercial property during the first quarter on this year, up six-fold from one year earlier and the highest level since the fourth quarter of 2015, according to the data. Among the most notable acquisitions was MCR Hotels’ $346 million purchase of the BT Tower in central London in February.
Across the U.K., U.S. investors spent $3.8 billion on commercial real estate in the first quarter, up two-thirds on 2023 and the most since early 2022.
“This positive uplift into this new cycle tells us U.S. capital is firmly back in the market,” said Fergus Keane, BNP Paribas Real Estate’s head of central London capital markets, adding that London’s more appealing “leasing fundamentals” and the strength of the U.S. dollar versus the British pound helps to fuel investor interest.
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