Foreign investors now own 52% of the Square Mile’s office stock, up from 8% in 1980 and continuing an upward trend seen since the Big Bang, according to the 'Who Owns the City' report published on Tuesday by Development Securities.

The study, based on research by the University of Cambridge, reveals that the City of London office market has displayed remarkable resilience to the 2008 global economic downturn. Surprisingly, the destruction of asset values in the aftermath of the crisis has not induced capital flight, as was experienced in the US. On the contrary, foreign investors have increased their share of City ownership, accounting for 66% of acquisitions by value since 2008. London as a whole attracts more inward office investment than any other city in the world, including New York, the study found.

Overseas buyers remain focused on prime City assets which are perceived to be of higher quality and to offer increased potential returns and greater liquidity. The average purchase price paid by foreign buyers between 2008 and 2011 was £91 mln compared with £27 mln on the part of UK investors.

The report also reveals the changing profile of City office owners including those with longer-term investment horizons. For example, there is a growing trend towards private ownership by high net worth investors who now own at least 6% of City office floorspace and possibly more given their shyness of the public eye. Traditional owners - livery companies, institutions, established property companies - have experienced a sharp decline in City office ownership from 29% in 2005 to 17% in 2011. Meanwhile, specialist real estate investors have increased their share of City space, now accounting for 45% as against 35% in 2005.

Germany remains the largest overseas investor with a 16% share of ownership, followed by the US (10%), while Middle Eastern ownership has expanded to 6%.