London 'to see increased interest in commercial property'

Date: 16/01/2012

London telephone numbers may be in demand in 2012, as one expert has claimed commercial property in the capital is proving popular with investors.

Property economist at Capital Economics Kelvin Davidson explained fears about the eurozone could help boost the sector.

He described how London is "often perceived as a safe haven" by those looking to invest in commercial buildings.

It was suggested a loss of confidence in some European countries and European assets could help increase the city's attraction.

"There has been some evidence that during the turmoil, people are keen to get their assets and their money back into their own currency and their own country," Mr Davidson commented.

According to the specialist, the price of property is likely to "drift lower" as the UK returns to recession.

Recent research from the Royal Institution of Chartered Surveyors revealed falling occupier demand and increasing availability drove down commercial building rental expectations in the final quarter of 2011.