Commercial property in central London currently looks a lot more attractive to foreign buyers than other alternative investments, it has been claimed. At least, this is the finding of a new report by Real Capital Analytics looking into the current health of the market.
A core London office property offering a yield at around five or six per cent "looks fantastic" when compared to alternatives, analysts at the company have said.
Indeed, this has meant that the region has been attracting the attention of overseas buyers from as far afield as Hong Kong, Qatar and Canada. Sales of existing commercial property in the UK capital totalled USD 13.9 billion in the first nine months of 2010 - more than in any other city Real Capital Analytics said.
The research body added that Tokyo was the second ranked city in terms of commercial investment based on existing commercial property sales in the first nine months, at USD 13.1 billion. Hong Kong was third, followed by Paris and New York.