Commercial mortgages could buy 'best-ranked property in Europe'

12 November 2010

Written by David Whittaker

Commercial mortgages may be used to buy property in London - the best-ranked real estate market in Europe, according to Capital Economics.

Kelvin Davidson, property economist at the firm, said the city was likely to perform better than any other on the continent in terms of assets.

"The markets in the UK and maybe France look to be near the top of the field, so why would you not try and chase them?" he commented.

Foreign investment in commercial real estate was popular in during the boom as there was a lot of liquidity.

With a lack of available property at home, people began to look overseas to speculate in bricks and mortar.

Although international banks retreated once finance became less readily available, Mr Davidson noted German lenders are becoming more active in the UK, indicating this situation may be turning around.

The Colliers International Global Investment Sentiment Survey for the third quarter showed London offices were one of the main targets for investors in western Europe.

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