London has gone to the top of the list for property investment, according to a recent US survey of investors, ahead of New York and Washington DC.
London’s score was 31 points higher than second-place Washington and 40 points ahead of third-place New York. Last year, London was in second place, four points behind Washington and only two ahead of New York.
Investors believe that commercial real estate prices in London already have bottomed out. However, prices in the U.S. have not because of differences in accounting practices. “London currently offers investors the advantage of a “re-priced” market,” James Fetgatter, AFIRE chief executive, said. “The re-pricing began sooner than it did in other cities.”
The survey of the association’s nearly 200 members was conducted in the fourth quarter 2009. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S.