London property investment remains strong amidst trouble in the eurozone, according to IP Global.

Data from the property investment company said that property investments in the capital are outstripping the property yield benchmarks set by the UK’s Land Registry, making it a strong option for investors.

Islington was singled out as the strongest performing area, with annualised returns of 11.5 per cent, while Tower Hamlets and Southwark also contain some strong projects.

Robert Pearce, director of IP Global, commented: "The mature legal framework that underpins the UK property market, low cost of borrowing and under supply of housing stock in key areas of central London are all factors that have attracted foreign investment to London, especially from Gulf countries."

He added that this trend is likely to continue into next year as Middle Eastern investors seek long term stability.

Mr Pearce recommended that investors diversify their portfolios into new London boroughs.

It was recently reported that the housing market in London is also performing well, with the Residential Landlords Association suggesting demand for rented houses will be high.

London Commercial Property News