London is 'top city for investors'

buying property in the capital is not set to get any easier, with London now labelled the top city for investors.

Knight Frank's European Investment Commentary Research Report placed London above all continental rivals for investment appeal – meaning that prices are likely to remain high for buyers.

The report showed that overall property fundamentals for most of Europe's 'office markets' remained strong with, vacancy rates continuing to fall and rental property growth adding appeal to the already dominant cities.

Closely following London were other northern business cities Stockholm and Dublin, with GDP growth, employment growth, rental growth and risk rankings all factored into the rankings.

London is now widely considered to be the best place to do business in Europe, and perhaps the world, with the capital's multicultural and open feel bringing in business and property investors from across Europe.

According to the Land Registry, average house prices in the capital are now at £351,039, with the city's reputation and investment appeal putting ever higher premiums on all property in London and leading many people to rent instead of buy.

Published 13th December, 2007

© 2007 Estates IT Limited