Commercial mortgage holders and investors are looking to London as the place to spend their money, a report has revealed.
PricewaterhouseCoopers (PwC) and Urban Land Institute carried out the research, which found that London is the most popular place in Europe to invest in commercial property.
Costs of new property developments have also fallen by the largest margin in 20 years, it was noted.
Munich was the most popular city last year, but since the value of the pound declined investors have turned towards England's capital.
Offices in central London dropped by 50 per cent, which was larger than the amount seen in other European cities.
Head of real estate at PwC John Forbes said: "The worst may be over and the bottom has been reached for London … There's a concern that for prime assets with good tenants, there’s a bubble developing."
Research from Ernst & Young reported an upturn in the commercial property market, although this may not be a long-term trend.
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