A new report published by Real Capital Analytics (RCA)has revealed that commercial property in central London currently is attracting a significant amount more foreign buyers than any other alternative investments; the report looks into the current health of the London commercial property market.
Central London has seen purchases from overseas buyers from as far afield as Hong Kong, Qatar and Canada. Sales of existing commercial property in the UK capital totalled $13.9 billion (£9 billion) during the first nine months of 2010 – more than in any other city, Bloomberg reports.
Managing director of RCA Dan Fasulo stated the high yield offered by space in the capital has been the main attraction.
“A core London office property at a 5% or 6% yield looks fantastic against the alternatives,” he was quoted by the news agency as saying.
“There’s a massive surplus of investment capital looking for a home,” he added, meaning purchase levels could continue to be strong heading into 2011.
Tokyo was the second ranked city in terms of commercial investment based on existing commercial property sales in the first nine months, at USD 13.1 billion. Hong Kong was third, followed by Paris and New York.
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