City commercial property investment hits eight-year high

Spending was up 80% on last January (Getty Images)

Commercial investment into City of London property hit £572.2 million in January, 55% higher than the total for the whole of the final quarter of 2022, and the best January since 2016, according to Savills.

The estate agency recorded eight transactions during the month, with spending 80% higher than January 2022, and said there are a further 16 buildings currently under offer worth a combined £1.67 billion.

The largest deal of the month was Chinachem Group’s acquisition of 1 New Street Square, Deloitte’s headquarters, for £349.5 million.

Felix Rabeneck, director in the City investment team at Savills, said: “This has been the strongest start to the year in the City for eight years, as improving investor sentiment combined with more market data points has helped narrow the gap between vendors’ and buyers’ pricing expectations.”