The retail real estate sector in the UK's capital appears to be holding up well in the face of wider economic problems, the latest research from Knight Frank suggests. According to the firm, many of the city's key retail sites - such as Bond Street, Covent Garden and Regent Street - have seen rents increase this year. Darren Yates, partner in the company's research team, explained: "International retailers continue to drive demand in these major thoroughfares and, with limited space available, rents are still under upward pressure."
Knight Frank also pointed out that the resilience of retail real estate in prime locations has attracted the interest of international investors, with numerous private individuals keen to acquire single properties in sought-after locations, while larger investors are aiming to consolidate their portfolios with such assets.
Earlier this week, Mark Bottomley wrote in a piece for Global Property Guide that the new raft of quantitative easing announced by the Bank of England's Monetary Policy Committee this month could help support the UK's property market by boosting the amount of funding available for real estate investment.