Commercial property investment 'to continue'

Office design news from Morgan Lovell

Published on 16-06-2010

Overseas investors will continue to see London commercial property as an attractive option for the foreseeable future, one sector expert has claimed.

Andrew Teacher, media manager at the British Property Federation, said the weakness of sterling against foreign currencies at present is making it cheaper for overseas buyers to purchase prime real estate in the UK and therefore, cash-rich individuals and companies are seeking to make the most of this advantage while it lasts.

He commented: "It just depends on what is out there but, ultimately, trophy London assets are trophy London assets whether you are in a downturn or not and people will always want to own them."

According to figures from the Investment Property Databank, the commercial property capital growth rate in the UK rose by 0.5 per cent in May.

The figure now stands at 13.5 per cent - the highest since November 2006 - while rents declined by seven base points during the month, the smallest decline since August 2008.

Posted by Ian Johnson.