Middle East funds help boost investor sentiment in London property

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Leo Sterling, the UAE’s premium property portfolio manager, has discovered new investment offerings in London, particularly catering to investors from the Middle East, as recent studies have shown that investor sentiment has improved significantly in key European markets such as London.
According to Leo Sterling, analysts have predicted prime rents in the City of London to increase by 19% in 2010 to GBP 52.50 per square foot, up from GBP 44 per square foot in 2009, and eventually reach GBP 67 per square foot by 2014, rising 52% in five years.
London also ranked fourth among European markets for investments in existing properties and first for new acquisition opportunities, according to the Emerging Trends in Real Estate Europe published by the Urban Land Institute and PricewaterhouseCoopers. Leo Sterling is now focusing its marketing campaign on institutional property funds, particularly Middle East sovereign wealth funds that are steadily investing in London's property market.
"While confidence levels are steadily increasing, investors continue to be mindful of their investment activities and prefer to avoid unnecessary risks. That is why property investments in Europe nowadays are primarily concentrated in more stable and familiar markets such as London,” said Laura Martorano, CEO and founder of Leo Sterling.
“Institutional investors from the Middle East prefer to invest in London as they are better accustomed to the market and thus have greater confidence in its stability and ability to recover from the recession."
Analysts have said that business potential in London's property market is expected to receive a further boost through a surge in demand from specialist fund managers, following the recent recovery in financial markets. A projected supply crunch in 2011 will likewise open new opportunities for property developers and investors as only around 106,000 square feet of speculative space under construction is expected to be completed by next year.