INDUSTRY NEWS

Pound’s weakness encourages commercial property investment

The current weakness of the pound is encouraging investment in commercial property from the Middle East and North Africa.

The weakness of the currency against both the dollar and the Euro has attracted more than dh 3.5 billion (£600 million) since May, Emirates business 24/7 reports.

Asteco international investment consultant Richard Angel said: "The UK is looking to be an attractive destination for the Mena region because of the exchange rate gains and the economic downturn."

Mr Angel noted that Europe was less attractive for commercial property buyers and in the UK savings of around 20 per cent were possible.

Net yield share increased in London, making it the most attractive proposition he said.

"Capital values have been decreasing, which has led to increases in yields on commercial properties over the past year," Mr Angel added.

Commercial property prices are set to fall further in 2009 – according to the Independent Property Data Bank values dipped nine per cent in November alone.
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