London has ''highest rent value in the world'' - commercial mortgages

27 June 2007

Commercial property in London is providing more value in terms of rents received by landlords than anywhere else in the world, it has been advised.

Speaking at the Reuters Real Estate Summit in London, the chief executive of property firm Brixton said that continuing discrepancies between supply and demand were ensuring that London remained a focal point for investment opportunities.

Firms and landlords with commercial mortgages will continue to experience strong returns in London and the south east, Tim Wheeler predicted.

"I''m not interested in a development program in Europe... None of those markets have anything like the supply tension that the south east of the UK has," Mr Wheeler commented, according to Reuters.

"The highest land values in the global industrial property market and the highest rent value anywhere in the world are in southwest London, because supply is so strained and obviously demand is strong," he added.

The demand for commercial property is set to increase in the next six months, the Confederation of British Industry advised earlier this week.