London still hot property
With a mere five months until MIPIM 2012, London’s commercial property sector is booming as it continues to be seen as a safe haven for property investors during the European financial crisis. Over the past 18 months it has swallowed up an incredible 39 per cent of the total inward investment into Europe’s commercial sector. That’s a total of £8 billion to you and me, as non-European governments, private equity investors and pensions and insurance funds continue to snap up offices and shops throughout the capital.
What is surprising is that the figure is almost five times that of Paris, which as the next most popular city saw an investment of only £1.63 billion. The reason? People are looking away from government debt to other forms of investments that will provide a steady yield. And London does just that, with its flexible lease structures, which means rents can be increased by a higher margin than in other European cities. This outside interest has also helped fuel an increase in new developments throughout the capital, such as the Middle East-backed Pinnacle in Bishopsgate.
The increase in foreign investors has also had an impact on the residential sector as cash rich foreigners buy up the limited number of flats and houses on the market. As a result house prices in London rose by 2.4 per cent in September, with 28 out of the capital’s 32 boroughs seeing a price rise during that month.
If you’re looking to invest in London or other European cities then check out all the latest European construction projects at MIPIM 2012. For accommodation look no further than EAS, your friendly local travel agents. We can provide you with the best hotels, apartments and even luxury yachts right in the heart of Cannes. With our expert knowledge of the region, we’ll ensure that you have the best stay possible. Click on this link to fill in our request form.