London commercial property 'remains popular'
Commercial property investment remains extremely popular in London, one sector expert has stated.
Mat Oakley, commercial research director for Savills, said that in the coming year, the capital is set to witness an influx of between £12-13 billion in the London office sector alone.
In addition, future high rise developments are set to become increasingly popular among investors in the years to come, as over the past two decades these forms of property have shown significantly above average rental yields, making them a highly attractive proposition for those keen to invest.
Mr Oakley noted that tower blocks offer excellent medium-term fund security and as such, they are one of the most sought after assets in the capital at present.
Tenants are likely to continue to be attracted to the many excellent views of the city which these properties provide, meaning that as the economy enters into a state of recovery, more and more Brits may rent this form of accommodation.
He commented: "London has consistently been the most popular destination for cross-border investment in pretty much every one of the last seven years and that is because it is seen as a very safe haven. In the Eurozone, confusion is going to continue for quite a number of years.
"Certainly we expect 2013 to see a similarly high level of cross-border investor interest in London."
He also recently stated that it is not just the English capital that is benefiting from this significant overseas investment at present, with many of the UK's other major cities also seeing a growth in investor activity.
Indeed, places like Birmingham, Manchester, Edinburgh, Cardiff and Liverpool have all seen a significant upturn in the amount of funds being poured into them by overseas buyers in recent years, especially as many individuals are now recognising the potential for future price growth in these cities.
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