London loses its property appeal in the tough economy

London loses its appeal property-wise because of the financial crisis.

The survey places London tenth out of 27 European cities in terms of property investment.

So far London has remained in a positive position property-wise throughout the financial crisis, but is now said to be losing some of its appeal as people are more reluctant to invest as the UK is faced with the prospect of enduring a recession.

High prices are also said to be a deciding factor, seeing London drop down to tenth place in a ranking of 27 European cities according to a survey put together by PricewaterhouseCoopers LLP.

In the survey last year London came first in terms of investment and fourth in terms of the performance of existing properties.

The current survey saw PwC ask more than 600 brokers, investors and money managers about the London property market where they stated that there was difficulty in getting hold of assets and there is a lot of strong competition as outlined in the PwC’s report for the Urban Land Institute.

The news comes after London had previously performed well in the property market being one of the first cities to start recovering after the global financial crisis where is rose in the second half of 2009 following two years of decline.

The report comes after reports in the latter part of 2011 from Development Securities Plc suggested that more than half of the offices in the City of London’s financial district are foreign-owned suggesting uncertainty and wariness in British investors.

Of the 27 cities discussed in the survey it is predicted that just one quarter of them will experience greater investment which includes London as well as Berlin, Hamburg, Istanbul, Munich, Moscow and Stockholm.

Author: Amy Edwards | | 0 Comments

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