London’s prominence as a global powerhouse isn’t a novelty; it’s a narrative that has endured through the ages. Last year London was not immune from the turbulence in the market, with rising interest rates, the cost of debt increasing and the role of the office being questioned, causing upheaval across the real estate sphere. However, as interest rates stabilise and office occupancy remains strong, we’re seeing the UK capital leading the charge in Europe’s recovery. But what sets London apart, making it the prime market leader in this resurgence?
Why is London in a position of strength?
Firstly, London’s commercial real estate market is a mature and well-established institutionally traded sector. Decades of recognition as a traded market for capital have solidified its position, with UK pension funds playing a dominant role, setting standards for long leases and investment norms. Moreover with relatively low entry and transaction costs compared to other global cities, it is an attractive proposition for investors. Transparency is another key factor; investors benefit from clear and readily available data, allowing for informed decision-making and a sense of security, bolstered by the strong quality of advice available.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
