London still Europe’s top property investment market

London is the most attractive market for property investors, according to the annual LaSalle Investment Management index of European cities.

This is the second year in a row that London has appeared at the top of the index.

LaSalle analyses the property markets in 91 European cities, to predict which are likely to attract the most demand from investors.

The LaSalle investment report said the European property market appeared strong, despite the troubles in the US housing market which has led to banks becoming more cautious.

London remains at number one in the LaSalle investment index, mainly due to gross domestic product, employment growth and the strong financial sector. The other top ten property markets are:

• Munich
• Paris
• Dublin
• Stockholm
• Luxembourg
• Helsinki
• Stuttgart
• Oslo
• Madrid

Robin Goodchild, head of European research at LaSalle, said they had “consistently identified an inner core of cities where property investors can expect robust returns.

“With market fundamentals positive and large volumes of capital still targeting European real estate, these cities can expect to take a large share of the transaction volume, notwithstanding the credit crisis.”

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