Skip Ribbon Commands
Skip to main content

News Releases


London proves to be the biggest magnet for Chinese commercial and residential investors in first half of 2014

SHANGHAI, 30 Jul 2014 London has been the most popular destination for Chinese investors in the first half of 2014 as efforts by the City's government to attract more mainland China capital into major infrastructure projects have spilled into residential and commercial markets.

Overall Chinese outbound investment was 17 percent higher in the first half of 2014 than over the same period of 2013 at US$5.4 billion.  Commercial investment has taken the lion's share at almost US$4 billion, but the growth has predominantly come from residential investment which is 84 percent higher than last year at US$1.5 billion.

In the second quarter, the stand-out purchases by Chinese investors were shared between London and San Francisco.  Institutional investors targeted London with China Construction Bank, China Overseas Holdings and China Life all buying core CBD office assets.  In San Francisco it was also CBD office assets that proved to be in vogue but here, it was a private investor who snapped up the 225 Bush Street asset.

David Green-Morgan, Global Capital Markets Research Director at JLL, said: "Although the Chinese investors have been very active in the world's major cities in the first half of 2014, they are energetically pursuing opportunities right across the spectrum of geographies and sectors.  For first time overseas investors it makes sense to target the most liquid cities, but for the more experienced, looking at smaller less liquid markets like Spain where yields are higher but so are the risks is a natural progression."

Dalian Wanda became one of the first Chinese investors into the Spanish market in the second quarter of 2014 with a purchase of an office asset in Madrid from the Santander Banking Group.  The introduction of the Golden Visa in many Southern European counties has also raised the profile of these locations amongst Chinese mainland investors.

Top Cities Attracting Chinese Investment into Real Estate, 1H14 (US$5m+)

CityInvestment Volume from China (USD million)
San Francisco548
Los Angeles169

Source: JLL

Darren Xia, Director of International Capital Group (ICG) at JLL China, noted: "We are definitely seeing an increase in Chinese capital moving overseas with the interest mainly focused in core office and mixed use development projects in global gateway cities such as London, New York, Sydney and San Francisco.  Developers and insurance companies remain the most active investor groups with a notable increase in interest for hotel and hospitality products in hot Chinese tourist destinations.  London remains the leading destination for Chinese capital, with its profile having been reinforced recently by visits to China by the Mayor of London Boris Johnston's office which JLL helped to coordinate by organizing several high level meetings with top Chinese developers and investors."

"Given the continued rise in Chinese outbound investment over the first half of the year and the pipeline of groups looking to invest outside of China, then full year 2014 outbound investment should easily eclipse the 2013 level of US$11 billion," noted David.

- ends - 

Notes to editors

1) Numbers in this release refer to the purchase of individual commercial property assets or portfolio of assets.
  • All transactions over US$ 5m
  • Sectors covered are office, retail, hotels, industrial, mixed-use and ‘other’ (includes nursing homes, student accommodation, etc)
  • Residential development sites

2) High resolution images of London Deputy Mayor – Edward Lister's visit to the JLL Shenzhen Office are available on request

About JLL 
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. JLL is the brand name of Jones Lang LaSalle Incorporated. For further information, visit

In Greater China, the firm has approximately 1,900 professionals and 12,000 on-site staff, providing quality real estate advice and services in the areas of retail, residential, commercial, management services, project and development services and research. The firm has been serving key clients including various government agencies and developers, as well as owners of high-end residential and commercial buildings in over 80 cities across China.