London continues to be the most active market in Europe, with investors eager to acquire prime property. In the second quarter, central London property investment totalled £3.38 billion (€4.24 billion), according to Cushman & Wakefield. First-half 2014 investment in London was £7.6 billion (€9.5 billion).

Prime yields have compressed in the face of mounting demand. In the second quarter, prime yields for London West End offices were 3.75 percent, according to Cushman & Wakefield, a tight compression from the 6.00 percent yields seen in 2009. City of London office prime yields were 4.75 percent, tightened from the 2009 high of 6.50 percent.

Much of the activity is coming from cross-border investors; this represented 78 percent of investment volume in the second quarter (up from 76 percent in the previous quarter), Cushman & Wakefield reports.

“The desire