Categorized | Commercial, International

Many Commercial Real Estate Investors Shying Away from London Market

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With extremely high prices, and the current fears of another recession in the United Kingdom, many investors are opting to stay clear of the London commercial real estate market.

Last year, the British city was considered the top choice out of every European city in the eyes of commercial real estate investors. They have now fallen to tenth, as investors are looking elsewhere for more stable markets.

The stability of the market is certainly one of the driving factors for the decline in investor interest. Prices were still quite high when London placed first last year, but the market was far more stable than it is at this point in time. Investors simply cannot afford to take the risk of paying premium prices anymore when they is a good chance that values will drop in the near future.

Many foreign investors that once favored London are now opting to move their money to Germany and Scandinavian countries, as they are considered to be the most likely to feel the negative effects of a possible European recession. Cities such as Istanbul, Munich, Berlin, and Stockholm have all replaced London as preferred investment targets.

For the past few years, London has competed with New York City as being the most attractive real estate investment location for investors worldwide. Last year, the two cities went head to head in terms of commercial real estate growth, as London attracted some of the world’s richest to establish offices in the prime parts of the city.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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