Influence of the global environment on capital flows in the London Office market
Journal of European Real Estate Research
ISSN: 1753-9269
Article publication date: 12 January 2022
Issue publication date: 11 May 2023
Abstract
Purpose
The London office market is a major destination of international real estate capital and arguably the epicentre of international real estate investment over the past decade. However, the increase in global uncertainties in recent years due to socio-economic and political trends highlights the need for more insights into the behaviour of international real estate capital flows. The purpose of this study is to evaluate the influence of the global and domestic environment on international real estate investment activities within the London office market over the period 2007–2017.
Design/methodology/approach
This study adopts an auto-regressive distributed lag approach using the real capital analytics (RCA) international real estate investment data. The RCA data analyses quarterly cross-border investment transactions within the central London office market for the period 2007–2017.
Findings
The study provides insights on the critical differences in the influence of the domestic and global environment on cross-border investment activities in this office market, specifically highlighting the significance of the influence of the global environment in the long run. In the short run, the influence of factors reflective of both the domestic and international environment are important indicating that international capital flows into the London office market is contextualised by the interaction of different factors.
Originality/value
The authors provide a holistic study of the influence of both the domestic and international environment on cross-border investment activities in the London office market, providing more insights on the behaviour of global real estate capital flows.
Keywords
Acknowledgements
The authors would like to acknowledge the generous support of Real Capital Analytics for providing Real Capital Analytics CBD office markets transaction data for the necessary analyses in this paper.
Citation
Fadeyi, O., McGreal, S., McCord, M.J., Berry, J. and Haran, M. (2023), "Influence of the global environment on capital flows in the London Office market", Journal of European Real Estate Research, Vol. 16 No. 1, pp. 42-63. https://doi.org/10.1108/JERER-05-2021-0029
Publisher
:Emerald Publishing Limited
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