European investment property growth up 7.8% last year - commercial mortgages

04 June 2007

The total value of investment property in Western Europe rose by 7.8 per cent during 2006, with growth of more than ten per cent in the UK, according to figures cited in Business Week.

A number of large, high-profile deals have helped boost the value of the UK market of late, signalling continued strong performance in the future and an attractive climate for businesses with commercial mortgages.

These include the recent sale of HSBC''s Canary Wharf headquarters as well as the sale of the Gherkin in the City of London.

Coupled with an influx of money from large institutional investors and private equity funds, the commercial property market has had a healthy 2006 and strong start to 2007. Legislation allowing real estate investment trusts has also been of benefit.

However, some commentators predict that the UK''s commercial property market is set for a slowdown in the future, a view that has been matched by the chiefs of both Land Securities and British Land.