Afternoon:
14°c
The West End property market is on a fast-track to recovery as international investors realise that the window of opportunity to grab a bargain is closing, analysts said today.
Buying in the West End slumped 42% in the first six months compared with the same period in 2008, but property analysts at BNP Paribas said that was “more due to lack of available stock than interested investors”.
The firm said that when properties come to the market now, they are “practically snapped up, even with leases close to expiry”. Owners of West End offices with a guaranteed income were reluctant to sell into a market where values have almost halved since their peak.
But Gregor Wallace, an investment director at BNP Paribas, said the market is now recovering: “Most assets have been finding buyers after only a short exposure to the market.
“Investors have suddenly realised yields have stabilised and bargains are coming to an end,” he said.
The sector is also receiving a boost from international investment. “The euro and dollar movement against the pound has spurred international investors. The outlook is still positive, with overseas cities still expensive by comparison,” he said.
