INDUSTRY NEWS

Overseas investors still buoying property market

The London commercial property market continues to experience growth, thanks primarily to the interest of overseas investors. Prime property values in the capital rose by 1.3 percent in April and are more than 20 percent higher than they were a year ago.

However, the rate of growth month-on-month has slowed to around half of what it was in March. There are a number of reasons for this, including fears for the wider economy based on the threat of contagion from the Greek economy, as well as concerns throughout that month of the probability of a hung parliament in the General Election.

Once again, central London office space proved the most lucrative sector of the market, offering total returns of almost 3 percent last month. Despite the deceleration, confidence has been boosted by a
number of multi-million pound deals in the early months of the year.

 

Image: Flickr (Rahego)