The level of investor spending on commercial property in 2021 recovered to the levels seen before the pandemic, research from property agent CBRE shows.
There was £11.3bn of investment, matching levels seen in 2019 and jumping by 49% from the £7.6bn invested in 2020.
This is quite surprising, given it was thought a substantial work from home culture will continue after the pandemic – even before the Omicron variant started having an impact.
James Beckham, head of London investment at CBRE, said: “Given the pent up demand for income producing assets, there will likely be a continuation of the momentum that has been building over the last couple of quarters into 2022.”
Major purchases in 2021 include the sale of 30 Fenchurch Street to Canadian investment firm Brookfield for £635m.
The market arguably still has some way to go before it returns to normality, as the 10-year annual average investors spend on commercial property in London is £14.5bn.
The government has told Londoners and the rest of the UK to work from home due to the spike in Covid cases, as around one in 15 people had the virus last week according to the Office for National Statistics (ONS).