International investors are likely to become more interested in UK commercial property due to the country's weak economy, according to Hugh Best, head of investment management at London Central Portfolio.
Mr Best said that while investors are reluctant to purchase assets in the capital due to the uncertainty of a double-dip recession, commercial real estate in the city will still be appealing to international buyers.
"A weak domestic economy will assist international investors buying in London central by keeping base rates at historic lows and continuing to suppress sterling," Mr Best stated. Indeed, the real estate expert suggested that the weak pound and strengthening international economy will also work to the UK's advantage in terms of attracting buyers.
His comments come after the Royal Institution of Chartered Surveyors (RICS) reported that property prices in London had fallen for the first time in 2010. It showed that 14 per cent more surveyors reported property values as dropping in the capital. RICS attributed this decline in value to an increase in the supply of property in London, with more real estate going on the market.
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