London no longer top in property investment league table, Munich and Paris ahead

City News Desk

The recession which has hit the London commercial real estate market hard has allowed rivals Munich and Paris to move ahead in a new league table published by property fund managers LaSalle Investment Management who regard investments in commercial real estate "more attractive" in the German and French capitals.

Over the medium term Munich and Paris are being favoured by the large pension and sovereign wealth funds for investments in commercial property who have not been according to La Salle been "affected as adversely by the recession".

London’s relatively weak gross domestic product and the potential for high unemployment have all conspired to move London down the league tables for investments in commercial property.

La Salle concluded that Munich will weather the global economic downturn best in Europe, due to the city's wealth and "highly diversified local business structure" reports the FT.

photo credit: London Daily News Sarkozy watches Brown