Investment deals in the City of London during 2012 were expected to reach up to £10bn, making it the biggest year for City investment since 2006, according to Jones Lang LaSalle research.

The property agent said in its fourth quarter figures that by 21 December, investment volumes in the City had reached £92bn, a 50% increase on 2011, when there was a total of £6bn of property traded.

It said the final figure was likely to be close to £10bn, and could be the second highest year ever, after the peak of 2006.

JLL said the West End had also been busy, with turnover to date already at £5.9bn – 25% above the £4.7bn total for the whole of 2011.  It forecasted that year-end volumes for the West End would be close to the previous peak of £6.3bn in 2006.

Damian Corbett, Head of London Capital Markets at Jones Lang LaSalle said: “Activity in the second half of 2012 has been strong across Central London , with the market continuing to witness high demand from global investors.  Based on turnover over the year to date, 80% of City transactions and 65% of West End transactions have been undertaken by overseas buyers.

“The Central London investment market continues to offer true global appeal with investors from North America, South America, Europe and Asia Pacific displacing domestic players. Looking to 2013, barring any global economic shocks, we predict prime yields could well be under pressure as a result of a potential shortage of suitable stock and a growing list of new market entrants joining existing active investors.

“We are confident that 2012 is on target to be the second highest year on record for Central London in terms of the total value of transactions, with investors keen to close deals before year end.”