A new report suggests that the capitals of England and France are two of the safest places in the world to invest in commercial property. London and Paris are two strong markets that investors would continue to seek for stable, long-term growth.
After a rocky couple of years, London’s commercial property market has shown signs of first rapid growth and then increasing stability. Capital values had fallen by around 50 percent at the worst of the recession, and recovery lagged the stock market by six months.
Now, however, London represents a better prospect than the capitals of other, emerging markets. Core markets such as Washington, New York and Tokyo were also cited as increasingly attractive for long-term investors now that global economic recovery appears well under way. The same report concluded that banks would be unlikely to flood the markets with distressed assets, since renegotiating terms tends to be more beneficial for all involved.
Image: Flickr (Dmitry B)