London property market is being targeted by foreign investors who have been attracted by tumbling asset prices and the devaluation of the sterling.
 
Capital values have fallen by over 30% since the UK peak in June 2007, according to the leading property index IPD, but this becomes up to 60% for buyers in the Eurozone and the US because of the decline in the sterling value.
 
Investors are attracted by the income security that London offers.
 
The theme of foreign investment into the UK has dominated the global property conference Mipim in Cannes in first quarter 2009.
 
It is believed that activity from overseas buyers will ensure the UK property market (one of the most devalued in Europe) emerges from the slump first.
 
The bulk of investment is expected to come from German funds (which also took advantage of falling values in the last recession in the 1990s) as well as Spanish, Middle Eastern, North American and Far Eastern groups.

Their interest is focused on prime property in London, which is considered to be a relative safe haven with reliable income, despite the financial crisis.
 
Norway's sovereign wealth fund, with $20bn to invest in property, has already stated its interest in the UK market in early 2009.
 
In April 2009 prime central London property prices rose 0.4% month-on-month, the first time since March 2008 as buyers' attitude to prices falling further changed.
 
Many agents agreed more sales in the 6 weeks of mid March to end of April than in the previous 6 months as buyers lost the fear factor about prices falling further.
 
Month-on-month 0.4% rise in central London's exclusive post codes was boosted by lower price bands, under GBP 1 million, which saw the biggest improvement with a rise of 1.6% in the month of April.