Despite Uncertainty, UK Commercial Property Still Popular with Overseas Buyers
Financial Times reports: In the latest results from an industry survey by the British financial institution Lloyds Banking Group, respondents are not expecting the UK property market to improve in the next six months, suggesting that confidence is at its lowest since the index started in 2010. The severe decline comes as banks retreat from property lending amid pressure to reassess the risk of debt secured against property.
But London's commercial real estate sector has proven to be successful in sheltering from the effects of the eurozone crisis. Investors from Spain, Italy and Greece are increasingly looking toward London investments in a bid to shelter themselves from their countries' economic problems.
The FT quoted data from Real Capital Analytics, which showed that £10.21 billion was spent on London's commercial property sector by US, Middle Eastern, European and Asian institutions in 2011. A total of £13.2 billion was poured into the UK commercial property market, with London investments therefore accounting for 77% of this.
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Posted by: Hermann Lademann