LONDON has become the best-value real estate hub in the world, thanks to the severe drop in the value of City of London offices, according to the annual Money into Property report published by consultancy DTZ.
DTZ said that the period between 2008 and 2010 will see the worst cumulative returns for UK property since records began in 1921, but warned that the outlook for property investment remains bleak globally.
Prime rents in the City and West End have already fallen by 31 per cent and 23 per cent since the 2007 peak, and are predicted to fall another 14 per cent and 20 per cent respectively. But DTZ said that the prime City office market can still offer attractive returns.
The report, which covers 38 countries, predicts that London’s West End, Madrid, Paris and Sydney will reach fair value at some point this year.