London retains its attraction as top City for European investors

LONDON has taken the title of the top city destination for European property investors for a second consecutive year, but Germany has leapfrogged the UK as the most attractive country for investment overall, according to a survey out yesterday.

In CBRE’s latest investor intentions report presented at MIPIM yesterday, the property advisory firm found that roughly a third of the 300 European investors surveyed (31 per cent) said London remained the most attracted city for investment, followed by Munich, Berlin, Paris and Warsaw.

Dublin also appeared in investors’ top ten places to stash their capital, in sixth place, with buyers setting their sights on an economic recovery in the market.

Peter Damesick, chairman of EMEA research at CBRE, said: “The most favoured markets for purchases remain heavily concentrated in northern Europe, notably Germany, the UK and Poland.

“Investors are still wary of southern European markets, although there are some signs that Spain is beginning to attract renewed interest.”

London’s real estate investment market recorded strong activity in 2012 with its highest volume of transactions since 2007, driven by booming demand from overseas investors.

Europe attracted €27bn (£23.4bn) from investors outside of the continent last year, with London attracting the lion’s share.

Mike Edwards, central London director at CBRE, said: “The current and significant improvements in leasing activity will reinforce the already strong investor confidence in the central London market.

“Since supply of available prime investment stock is limited, this is likely to result in increasing demand for secondary assets, particularly with shorter leases or with leasing exposure.”