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Increased appetite from Asian investors for the London market
Brief:Figures released by Jones Lang LaSalle( JLL) show increased appetite from Asian investors for the London market,155% hike in London hotel investment market in Q1 2014.
Britain property

Figures released by Jones Lang LaSalle( JLL) show increased appetite from Asian investors for the London market.

Q1 hotel investment figures released by JLL show a 155 per cent increase in the London hotel investment market in Q1 2014 compared to Q1 last year and a 33 per cent rise in Asian investment into the capital's hotel market compared to Q4 2013, with private equity firms making up over a quarter of the investment total.

Total investment in the London market for this quarter stood at £527.8 million, up by 8 per cent from Q4 2013 and 155 per cent from Q1 2013 when it stood at £207.2m.

The largest source of investment in Q1 and Q4 came from the UK domestic market, although the percentage fell by 39 per cent from Q4. The highest jump in terms of source of investment money came from Asian buyers, rising from 0 per cent to 33 per cent between two quarters. There was also a 5 per cent increase from Middle Eastern markets.

Drivers of Asian investment include an increase in Chinese property developers ploughing money into real estate projects following a relaxation of restrictions imposed by its government on Chinese companies investing overseas, as well as a broadening of the types of funding allowed.

hospitalitynet.org

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