High London prices encouraging Britons to invest abroad
High house prices in London are likely to continue driving investment overseas as new research shows the capital to be the second most expensive city in Europe.
According to the Global Property Guide report, tax-haven Monaco is the most expensive place in Europe, but is closely followed by prime central London where luxury apartments can cost up to £10,000 per square metre.
In other areas of central London, designated non-prime in the research, an apartment of 120 square metres is likely to cost £580,000, or £4,833.
Although other major European cities like Paris and Amsterdam also command high prices per square metre, there are also better value investment opportunities elsewhere on the continent.
Prices in the Bulgarian capital of Sofia, for example, are the second lowest in Europe of just Ôé¼1,042 (£685) per square metre, affording a rental yield of 10.56 per cent.
The research also showed that Istanbul (7.54 per cent) and Bucharest (8.17 per cent) gave high rental yield while major cities such as Rome (4.27 per cent) and Dublin (four per cent) were not as profitable.
The figures also show that prices in the Baltic states have risen rapidly with an apartment in Vilnius, Lithuania, costing around £2,500 per square metre.
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