In a sign of the economic clout of the East, new figures show there was a sharp rise in the money Asian investors spent on central London’s office investment market in 2011, reaching £1.7 billion ($2.6 billion), a year-on-year surge of 150 per cent.

Total investment volumes in the central London office market reached £10.8 billion in 2011, according to Jones Lang LaSalle. International buyers represented 60 per cent (£6.4 billion) of total investment volumes, with Asian buyers accounting for 16 per cent last year, up from 6 per cent in 2010.

The figures add to the image of London, both on the residential and commercial property side, as a magnet for foreigners seeking robust returns at a time of economic uncertainty. 

"What has been evident is the emergence of ‘new’ sources of Asian capital attracted to London, ranging from pension funds like EPF & PNB from Malaysia to ultra high net worth investors like Khoon Hong Kuok and Martua Sitorus who acquired ‘Aviva Tower’ in the City of London for £288 million,” said Alistair Meadows, head of the firm’s international capital group.  

"Asian buyers were especially dominant in the City of London office market, accounting for 23 per cent of annual investment volumes,” Meadows continued.

"Indeed, of the £3.5 billion traded in the City office market last year in lot sizes over £100 million, 40 per cent was undertaken by Asian buyers,” he added, predicting that Asian buyers will make up 20 per cent of such investment volumes this year.