London ''best European city for commercial property'' - commercial mortgages

23 October 2007

Firms with commercial mortgages are increasingly heading to London in order to capitalise on less restrictive regulations and strong economic growth, a new study has found.

LaSalle Investment Management''s annual European Regional Economic Growth Index has ranked London as the top European city for commercial property investors and occupiers, with levels of demand for property in the city ahead of those seen in other strongholds such as Munich and Paris.

Three other UK cities - Birmingham, Nottingham-Derby and Cardiff - were among those with the most-improved placings in this year''s report, the Financial Times has revealed.

"Most real estate markets are in pretty good shape on occupier demand fundamentals such as growth and activity," said LaSalle''s Alistair Seaton, according to the newspaper.

"London in particular has benefited from its levels of growth this year, which have been helped by a lighter touch regulatory regime than elsewhere," Mr Seaton added.

Real estate investment firm FE Samuels last week announced that it was setting up an office in Tampa, Florida, in order to encourage American investors to move their interests to London.