London’s struggling property market will pick up before Paris enjoys the same turnaround, a survey by a leading property developer shows.
Commercial property rates in London still have further to fall, but a slew of new investment by German firms could herald brighter times for commercial estate agents because the downturn has created strong opportunities for capital gains.
At present, the same study found, landlords are finding themselves in the difficult position of having to negotiate rent reductions in order to retain tenants.
It predicted further falls of up to 20%, meaning reduced profits for serviced offices and commercial estate agents in London.
However, the capital has been attracting new attention as investors consider how to position themselves in order to profit when the recession comes to an end. In particular, German banks comprise 8 out of the top 12 property lenders looking at new investment in the UK property market.