London has been cited as the best city in Europe for property investment.
In an influential survey compiled by LaSalle Investment Management, London topped the European Regional Economic Growth Index, beating 90 other cities across the continent.
The top five cities were as follows:
- London
- Munich
- Paris
- Dublin
- Stockholm
London has kept long-term leader Paris off the top-spot for the second consecutive year.
London’s position is largely based on strong GDP growth, high-employment, and the financial sector, which dominates the capital's economy. The city is also a hub for high-tech business, strong in creative industries and home to three of the UK's biggest companies for medicine and biosciences.London’s much maligned infrastructure is set to be at least partially renovated in preparation for 2012 Olympic Games.
The LaSalle report examines cities across Europe which are expected to see the highest levels of demand among owner-occupiers and investors over the medium term.
Economic growth, overall wealth and the relative attractiveness of the local business market were all considered when comparing the cities.
Robin Goodchild, head of European research at LaSalle said: "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".
Across the continent as a whole, large levels of property-based capital investment are still expected and transactions are forecast to remain buoyant, despite the recent credit crunch.