UK commercial property ‘is attractive to investors at present’

Posted 02/05/2011

Commercial property buyers are interested in prime British investments at present because of economic problems going on elsewhere in the world.

This is according to Mat Oakley, director of commercial research at Savills, who pointed out that with some markets including Portugal and Japan looking particularly volatile, the UK may be seen as a safe haven in which to buy assets.

“Investors have suddenly become much more risk averse again, which favours the UK market. We are seeing a lot more interest in prime UK assets from international investors in particular, as well as domestic,” he commented.

However, Mr Oakley pointed out that capital values have not been rising away from long-term, secure prime markets, something which potential commercial property investors may wish to keep in mind.

According to new figures from Knight Frank, London saw the most dramatic rise in prime rents seen anywhere in Europe last year, with the West End doing particularly well.