London Rocks

With the markets falling apart and the U.S. getting a credit downgrade, what are investors to do? It is a scary and unsettled time for most of us as we try to dimly peer into the ever-uncertain future. We all hope everything works out and things get back to normal, but what if they don't? What should you start, or stop, investing in? Should you be looking at commercial real estate?

There are a lot of questions, and unfortunately very few good answers. The economy is going crazy and ruining many predictions of economic success. So, as an investor, you need to look for something that is stable and secure in an era of insecurity.

Now, the question is, where should you look? Well, if you are mostly interested in commercial real estate, then London is where you want to put your money.

“The city's prime residential property prices have returned to their pre-recession peak, according to a survey, while demand for prime retail and office space continues to grow, driving up prices.”

And of course with the Olympics coming to the U.K. next year the demand will at least last through that time, which may be enough time to see our economy start to recover.

“The fact is that prime residential markets have acted as safe-havens for investors over the past two years—with growing demand for property in London, New York and other key global cities as economic and geopolitical concerns have pushed investors to look for stable locations for their wealth,” said Knight Frank‘s head of residential research Liam Bailey.

According to the Wall Street Journal, “in retail property, the picture is equally bright. U.K. real-estate investment trustsBritish Land Co. PLC and Shaftesbury PLC Thursday reported growth in rental income and low vacancy rates, despite the uncertain environment for consumer spending as wages lag inflation and the economy remains fragile.”

Obviously, you are looking for something to invest in that is promising. It appears that London, and other key major cities, is where you should put your money, at least for the time being.

Also, with the U.S. getting demoted and in economic crisis it is probably wise to take your money elsewhere. Of course, Europe has a bunch of troubles too, so who knows?

I need to go up to the attic and find my crystal ball so I can give everyone definitive answers, but this will have to do for now.

Do you think London real estate prosperity will continue?

Source article by Jonathan Buck from the Wall Street Journal

#CRE #economy #finance