London has been named as property investors number one choice when it comes to purchasing real estate in Europe. The annual European regional economic growth index compiled by LaSalle Investment Management, found the city to be at the top of the rankings.
However, other cities in the UK have fallen back sharply. Belfast, Liverpool and Sheffield are now among the least favoured places in Europe to invest in property, alongside locations which have struggled to deal with the global recession - notably in Greece and Spain.
LaSalle compiled the index by ranking 104 major European cities using a combination of economic growth factors, the overall level of wealth and the attractiveness of the business environment. Swiss locations jumped sharply up the rankings, but otherwise investor focus was mainly on leading cities such as Paris, Munich, Moscow, Stockholm and Oslo.
Robin Goodchild, La-Salle's head of European research and strategy, said: "It is clear that weak locations in traditionally strong countries such as Germany, France and the UK have suffered compared to their economic powerhouses."
The news comes just after CB Richard Ellis revealed that the UK capital city was the top destination for cross-regional investment during 2009 and the first half of 2010. According to the firm, London captured 27 per cent of all foreign purchases over the 18-month period.