London looks set to be the most attractive European location for investors in commercial property to concentrate their funds over the coming year, research has determined.
A survey of more than 600 major organisations and individuals – including property developers, investors and bankers – suggested that the UK capital held the best prospects for a return on investment. The reasons are two-fold. Firstly, London’s commercial property market was particularly badly affected by the downturn; as a financial centre its property prices experienced one of the worst falls as banks and hedge funds reigned in their activities or even went under. Now, prices are attractively low, though rising fast. Secondly, the pound has suffered over recent months, meaning that investors’ Euros go further.
The same survey indicated that Dublin, which experienced double-digit GDP contraction in the course of the financial crisis, was perceived as Europe’s riskiest investment prospect for commercial property.