Japanese investors are emerging as the most active Asian buyers in London’s busy commercial real estate market.

A number of Japanese investors have snapped up major office buildings this year, taking advantage of low borrowing costs at home. Activity has recovered strongly in the London office market, with Savills Research reporting reaching 77 assets, worth a total of £4.62 billion ($6.04 billion), under offer at the end of the third quarter. This is the highest total for more than three years.

There is also a significant number of large office deals underway; Savills is tracking 14 assets priced over £100 million which are currently under offer (as at Oct 25).

Oliver Watt, Director, Cross Border Investment, at Savills, says: “In terms of Asian investors, we are seeing Japanese investors hitting the headlines with a number of purchases. Savills has a Japan desk in London to serve these investors and we have recently added someone there in response to rising demand.”

Watt explains that many Japanese investors are able to fund London real estate purchases with debt raised on their balance sheet at home, making London office yields – 5.25% in the City and 3.75% in the West End, according to Savills Research – look attractive.

Major acquisitions by Japanese investors include Daibiru Group making its London debut with the purchase of Capital House, 85 King William Street in the City of London (pictured above) for £169 million ($221 million). Savills advised the purchaser. Also in the City, Sumitomo Mitsui Banking Corporation bought One Portsoken for £160 million ($209 million) on behalf of a private client.

The broader London market has been more active, with domestic institutional investors returning alongside Middle Eastern, European, and American investors. The office leasing market remains robust, with notably strong demand for newer offices with good sustainability performance.

Demand from other Asian investors remains mixed; Singaporean investors continue to be active in London and across Europe, but South Korean investors have been neutral and Hong Kong investors largely out of the market.

Watt says: “Some Hong Kong investors bought when interest rates were low and with high leverage, so have suffered in recent years. Hong Kong investors are wary, having seen their peers struggle a little, but London has been a favoured investment destination. The next time a major Hong Kong investor makes a play, others will follow.”

Further reading:
Central London Office Market Watch Q3 2025

Contact us:
Oliver Watt