Central London offices 'will be prime asset class'

26 September 2011

Written by Jeni Browne

Central London offices will be the top performing sector in the real estate market during the next three years, it has been said.

George Shaw, manager of Ignis Asset Management's UK property fund, claimed that the "margin of outperformance will be significantly reduced" by 2013.

Furthermore, commercial mortgage holders could notice a growth in rental fees for retailers, although this will be at a lower level than was seen on high streets over the last two decades, he asserted.

"Going forward, we will be monitoring signs of commercial property becoming mispriced relative to other asset classes," the expert stated, adding that his business will capitalise on these opportunities.

Mr Shaw forecast capital appreciation to reach levels of inflation at best, with total returns for investors generally driven by income.

London is also a good place for enterprises to locate themselves due to its large workforce and strong transport links, British Council for Offices chief executive Richard Kauntze recently declared.