Fewer British investors focusing on Germany: Colliers

UK property investors will shift their focus back to the opportunity-rich London market this year leaving less British capital for German real estate, according to property adviser Colliers Trombello Klbel Immobilienconsulting.

Vacancy rates have dropped considerably in London over the last year - by 6.4% in the City of London; by 4.3% in the West End and by 4.1% in the Docklands area. Rents have increased, and rents in the West End are the most expensive in Europe, with a top rate of EUR 146 per m² per month in 2007, Colliers International Research has indicated. The top rate in the City of London was EUR 82.17 per m² per month and EUR 57.82 per m² per month in the Docklands.

Conversely, purchase prices have fallen drastically, the property adviser said, in some parts of London as heavily leveraged owners are being forced to make quick sales in response to interest rate hikes and the lack of credit due to the turmoil in the financial markets.

Based on discussions with UK investors at the MIPIM property fair in Cannes last week, Ignaz Trombello, managing partner at the proeprty adviser, said: 'With this attractive price situation for purchasers in London we will see fewer British investors on a buying spree in Germany this year. Within the next few months we will who will fill the gap.'

UK commercial real estate investment - excluding residential properties and non performing loans - came to about EUR 10.7 bn in 2007, according to Colliers.