Insurance News Archive

London rent value 'is world's best'

Office and retail space in London provides property owners with the highest rents in the world which are boosting their value, analysts advise.

Competition for the best sites and a continuing lack of available or suitable space is making the capital a prime commercial property investment area, according to Tim Wheeler, the chief executive of property firm Brixton.

Speaking to Reuters Real Estate he said that these discrepancies between supply and demand suggest that landlords will continue to see strong returns in London and the south-east in coming months.

"I'm not interested in a development program in Europe... None of those markets have anything like the supply tension that the south east of the UK has," he said.

"The highest land values in the global industrial property market and the highest rent value anywhere in the world are in south-west London, because supply is so strained and obviously demand is strong."

Recent predictions suggest that this demand for commercial property is only set to increase as a recent survey by the confederation of British Industry found that 22 per cent plan to increase their portfolio to take advantage of this market interest.

28 Jun 2007