The commercial property market in London will likely recover before that in other European capitals, the MIPIM property conference in Cannes has heard. London recently lost its title as most expensive commercial property market as rents plummeted in the wake of the credit crunch and ensuing recession, but is now cheap enough to present a real opportunity for foreign investors.
Phillipe Zivkovic, executive chairman of BNP Paribas Real Estate, compared the situation in the UK with that of France. “If you look at the Paris market, the investors there are looking at the price levels and wondering if they are sufficient to create an opportunity of capital gain. Instead they are taking an increasing interest in London, where there has been a sharp drop in values,” he said.
However, other analysts have predicted further falls in London’s office space rent before recovery begins.