London has best property prospects

London has the best prospects for demand for property in Europe according to the European Regional Economic Growth Index (E-REGI) published by LaSalle.

This is the second consecutive year that London has been ranked number one by the report, thanks largely to its high GDP which continues to drive employment and growth in the financial sector. In addition, the 2012 Olympic Games and the Thames Gateway development are set to bring massive regeneration to parts of the Capital.

Overall, most of the UK cities improved their ranking in 2007, mainly due to strong growth, which went hand in hand with increasing wealth.

Three UK cities are amongst the most improved in the index. Nottingham-Derby (ranked 30th,up 26 places on last year’s E-REGI), Cardiff (47 / +21) and Birmingham (29 / +18) - are among the most improved in the index.

Dublin dropped one position from last year to rank at number four. But the report says it still remains a lucrative prospect for investors thanks to its strong economy and developing manufacturing, education and health services which has seen a high amount of inward migration.

Robin Goodchild, Head of European Research, LaSalle Investment Management, commented: “Europe has a group of key cities which are the principal locations investors should focus on.

“London, Munich and Paris are the stand-out markets of the moment that will offer consistent occupier demand through the business cycle.”