TheCityUK's Sovereign Wealth Funds 2013 report has reported that SWFs have increased their investment into property worldwide by 30% in the past year to $10bn.

London has been a big beneficiary of the SWF's increased allocation to real estate, with recent transactions including China Investment Corporation's purchase of Winchester House, Deutsche Bank's London headquarters, for £245m. Gingko Tree Investment, part of China's State Administration of Foreign Exchange, has also invested more than $1.8bn in several deals including offices in London and Manchester, water utilities and student housing.

Another key trend in SWFs confirmed by the report was that they are moving to diversify their portfolios, with deal sizes getting smaller and emerging markets accounting for a growing share of investments.

Chris Cummings, chief executive of TheCityUK, said: "The increased investment in property by SWFs is a boon for London, which is a prime real estate location and seen as a safe haven market for investors.

"The UK is a leading destination for SWF investments, accounting for one sixth of glocal investments since 2005, second only to the US, and attracting more capital than France, Germany and Spain combined."