Insurance News Archive
Commercial property boosted by overseas investment
The past six years has seen overseas investment pour into the UK's commercial property sector, according to new reports.
Investment has come into the UK from all quarters due to the rising value of retail and office space, says the Observer newspaper, but it has particularly been a target for investors from the Middle East.
"There is a wall of money coming in from the Middle East. Arab countries are awash with petrodollars, and London properties have been the destination of choice for their cash," Mike Prew, a Lehman Brothers analyst, told the newspaper before adding: "At the top end, there is probably more growth to come."
Commercial mortgages are likely to be impacted by such strong interest in the UK commercial property sector, with demand for loans expected to increase if the trend continues.
Efforts are underway to ensure that is the case, as enterprises such as this week's City and Gulf Co-operation Council Countries Conference which will focus on efforts to improve the relationship between London and the Gulf nations.
This is part of a push from the industry to attempt to build more links between businesses and investment groups in the UK and the Middle East.
26 Jun 2007
