London is set for an increase in commercial real estate investment in 2020 as international investors target the capital’s high-yielding office market, following the decisive 2019 UK General Election result.

According to the latest research from Knight Frank, global investors have increased the total capital targeting London commercial assets to £48.4bn, a 21% rise on 2019 and £2bn higher than 2018. However, with just £2.3bn of buildings for sale, investors will face strong competition, which is expected to drive values higher in 2020.

Knight Frank’s annual London Report details the opportunities and challenges facing the capital’s real estate market in the year ahead. It reveals that in 2019 London investment activity fell 15% to £13.9bn, down from £16.8bn in 2018, as Brexit uncertainty and a shortage of available assets constrained the number of deals.

Nick Braybrook, head of London capital markets at Knight Frank, said: “Despite the fall in activity, London remained the second largest market for commercial office real estate investment in 2019, topped only by Paris and ahead of New York, Hong Kong and Berlin. London’s stability and global status is attracting international investors who see a competitive economy, strong occupier market and high office yields, compared with other global cities.”