London has 'greatest potential for rental growth'

Office design news from Morgan Lovell

Published on 12-10-2010

Properties in London have greater potential than buildings in other European cities for growth in rental returns over the next five years, it has been claimed.

Mat Oakley, director of commercial research at Savills, said the London market is less exposed to potential government cuts because of its strong private sector and restrained levels of development in the capital mean the city is well positioned for investors.

"[There is also] the fact that probably London's property market is about a year ahead in the cycle of most other European cities, so it went down first, but it is coming back first," he commented.

He added that international investors will continue to look favourably on property in the city, despite any austerity measures the government does put in place.

According to a recent Jones Lang LaSalle report, London has regained the top spot as the most attractive European city for real estate investment.

The city fell to eighth in 2009, but is now back ahead of last year's winner Munich.

Posted by Ian Johnson