Risk averse investors 'focus on UK commercial property'

Office design news from Morgan Lovell

Published on 04-05-2011

Office interior developments in the UK are hot property for international investors at the minute, it has been revealed.

Mat Oakley, director of commercial research at Savills, said global investors have shown a lot more interest in UK assets in recent months as the prime market in this country remains relatively stable in comparison to other European and Asian markets.

He commented: "The combination of Portugal finally going into a bail-out, the problems in Japan and the general lacklustre economic recovery in many parts of the world mean that investors have suddenly become much more risk averse again."

According to figures compiled by Knight Frank, the central London office market led the recovery in demand and rental values in 2010.

The capital saw the most dramatic rise in prime rents seen anywhere in Europe during 2010, with West End office prime rents jumping by 31 per cent to reach £85 per square foot per annum by the year-end.

Posted by Adrian Norman