London’s commercial property market has now enjoyed two consecutive quarters of growth, a leading real estate broker reports.
More than £1.4 billion was invested in Q2, and over £1.6 billion in Q3 – roughly a 30 percent lift from Q3, 2008. The West End was the focus of the majority of this investment, which totalled £900 million from July to September.
Well over two-thirds of investors were based overseas, for at least two reasons.
Firstly, as the centre of Europe’s financial services industry, London has been particularly badly hit by the credit crunch. Commercial property in the capital has halved in value over the last two years as a result, and now represents an attractive investment market.
Secondly, as the pound continues to slide in value and is tipped to reach parity with the Euro by the end of the year, foreign investors find that their money goes further.