Property buyers remain keen to invest in London | 23 August 2012
Property buyers are still keen to invest in London’s commercial property market.
New figures suggest that foreign investors continue to be attracted to London in their droves, despite the value of most properties in the capital waning.
Industry experts have suggested that the majority of these investors are only likely to see profits from ever-increasing rental costs.
In an interview with wsj.com, BNP Paribas international investment director Andrew Cruickshank explained that many buyers were extremely worried about the current outlook in the eurozone and the Middle East.
He said: “Investors focus on wealth preservation, as opposed to growth, and think long-term when they buy offices in London. I speak with many Middle Eastern investors who are absolutely terrified about the Iran situation, and London is a second home for them.”
Ipinglobal.com reports that London continues to be the best performing city for commercial property in the UK by some distance. Total returns from the whole of Britain in Q2 2012 stood at 0.9 per cent, but removing London from these statistics brings it down to a worrying -0.8 per cent.
However, many commentators have pointed out that this sort of gap between London and the rest of the UK has existed for some time.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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