London commercial mortgage holders may be investing in prosperous industry

30 December 2010

Written by Jeni Browne

Commercial mortgage holders in London may be encouraged to hear that new statistics have highlighted growth in the capital.

US-based Real Capital Analytics (RCA) found the city attracted more commercial property investment than any other in the world for the second year running.

Speculators from Hong Kong, Qatar and Canada were said to be attracted to London's rising rents, while sales totalled $13.9 billion (£9 billion) over the first three quarters of 2010.

"There's a massive surplus of investment capital looking for a home and the one thing in common is a desire for yield," Dan Fasulo of RCA said.

According to Mr Fasulo, offices in the centre of London offer a five or six per cent yield, which he described as "fantastic" compared with alternatives.

Recent figures from the Investment Property Databank revealed the value of commercial real estate across the UK rose by 0.1 per cent in November.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.