London Tops The Property Hit Parade For Serious Investors

London came out top of the international property pops for commercial real estate investment according the Association of Foreign Investors in Real Estate (AFIRE). Nearly 200 members, who together own property worth $842 billion internationally were asked to rate investing in cities and countries.

In the city stakes London' easily came out top, a massive 31 points ahead of second-place Washington, and 40 points in front of third placed New York. London's great leap forward was dramatic – in 2008 it only rated a close second.

AFIRE investors saw prices having already bottomed in London, while in the US further declines were expected before prices turned up. Or as James Fetgatter, AFIRE chief executive, put it :

"London currently offers investors the advantage of a "re-priced" market."

On a country basis, despite the possible price dip to come, the United States with 44 per cent was again voted "most stable and secure real estate investment environment."

Germany came second with 21 percent of the vote, reminiscent of a forgotten Eurovision song contest...

"The financial crisis of the past year has obviously affected investors' perceptions of U.S. real estate as 'stable and secure,'" said Fetgatter. "However, it is also apparent that opportunity lies within this instability since the U.S., along with the UK, show substantially higher scoring for expected capital appreciation."

While just over half said the United States - where prices are off more than 40 per cent from all time highs - would likely afford best price appreciation going forward, the UK came a creditable second, perhaps surprisingly beating China, which has had a roaring 2009.

The type of property most favoured by investors was housing estates and flats, with other more business-oriented construction and property seen as somewhat less rewarding. It would appear the pro's are once again expecting housing to lead the recovery in 2010.

Meanwhile data released by Rightmove this week showed UK housing up for the year, in line with reports from the Halifax and Nationwide.

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