Twitter debate eastv west

In the days and weeks after the Brexit vote, commercial property deals began to fall through in the capital and open-ended funds were limiting the amount investors could withdraw.

Fast-forward 18 months and investment in London is in surprisingly rude health. But drill down into the data, and some parts of the capital are faring better than others. So which areas and sectors are likely to be hot in 2018 – and which not?

That was the question data firm Datscha set out to answer with Property Week at an #EastversusWest Twitter debate last month at Datscha’s London office.

Drawing on data comparing investment transactions in the east and west of the capital, the hour-long debate covered topics ranging from the implications of the Land Registry’s decision to release full ownership data and the sustainability of Asian and Middle Eastern investment to the thorny question of how close the London market is to the top.

Datscha’s head of research Lesley Males and director Olly Freedman and Property Week’s Emanuela Barbiroglio and Richard Hook fielded questions and comments from data analysts and property professionals alike during the debate, which generated around 1.5 million impressions across more than 100 tweets.

Download the full data set behind #EastversusWest here

One key finding that emerged from Datscha’s review of commercial transactions over £3m – which were categorised by the buyer’s country of origin, property type and location – was that transaction values are significantly higher in the east than the west at £62m on average versus £39m, predominantly driven by trophy asset transactions in the City.

Males suggested that while the east could face a decline in big deals as Asian capital flows slowed over the coming months, the west was likely to remain attractive as it boasted “a good split of asset classes and fringe locations that could increase in value once Crossrail completes and if Heathrow expands”.

As to the big question of when the London market would peak, some thought we were very close now and others felt we were a year off. 

The conclusion was that, despite the challenges ahead, both the east and west were set for a strong 2018. Time will tell.

Recap the whole Twitter debate with #EastversusWest

Twitter debate eastv west