What a difference a few days makes. Only a month ago Savills were reporting transactional volumes in the City up by 58% year to date with the £519.5m transacted in February an 86% increase on January's performance. With Brexit "done", a sense of optimism and a returning appetite to deal-doing could be felt right across the market.
It is no surprise of course that market activity has dropped off a cliff. Quite apart from the profound economic uncertainties all investors now face, as anyone who has bought a home will know, property is a physical asset, something to be felt and experienced. At a time when viewings, inspections and surveys are all but impossible, taking any property acquisition decision is going to be firmly put to the back burner. Add into the mix caveated valuations and established occupier covenant strengths tingeing with future uncertainty, evaporating market activity is inevitable.
Yet with a constrained supply pipeline and on-going resilient occupier demand, longer term outlook should remain positive. London's real estate market can and will bounce back.
The amount property investors spent on London office buildings plunged by nearly 75% in March, as the coronavirus crisis intensified.