Large Commercial property investors transfer money to the UK
Many commercial property investors around the world are choosing to transfer money to the UK, a new report has stated.
According to Knight Frank, London in particular is proving very popular with sovereign wealth funds and affluent individuals across the globe right now.
Indeed, it stated that demand for commercial property in the city has been very strong at a time when activity across Europe as a whole declined.
Andrew Sim, head of European investment at the group, commented: "The core markets have remained buoyant and none more so than in London.
"Despite continued worrying levels of tenant inactivity, we have even seen prime yields harden under the ever-increasing flow of international capital."
Figures from Knight Frank showed that between January and June 2012, commercial transaction volumes fell to €46.8 billion (£37.7 billion). This was more than 19 per cent down on the amount recorded in the same period of 2011.
The organisation blamed this on the weak outlook for the European economy, as well as continuing uncertainty regarding the state of the eurozone.
However, conditions were found to be relatively favourable in several other markets besides London.
The Nordic nations, for instance, were said to have attracted plenty of interest from investors throughout the first half of the year, while Germany did well too.
Knight Frank stated that France is also proving popular with affluent individuals and sovereign wealth funds.
This, it said, shows that investor demand has "generally mirrored wider economic trends" throughout the year to date.
"Interest in the peripheral eurozone countries has waned, with investors pursuing a safety first policy," Knight Frank commented.
This comes after the organisation revealed nearly nine out of ten sales of central London offices between April and June 2012 were to investors based outside the UK. Many of the foreign purchasers were found to be from countries including the US, Russia, China and Brazil.