For the first time more than half of London City's office space is owned by overseas buyers, according to research commissioned by Development Securities.

In 1980 just eight per cent of buildings were owned by foreign investors but that number has now rocketed to 52 per cent.

The last 'Who Owns the City?' report, in 2006, found 45 per cent of the City was in foreign hands.

Development Securities said it showed London's attractiveness to foreign investors has been undeterred by the economic downturn as they continue to look to set up in the UK.

The report, which was written by the Real Estate Finance Group at the University of Cambridge, found London attracts more office investment than any other city in the world, including New York.

German investors are the largest overseas investor, owning 16 per cent of office space, followed by the US (ten per cent) and the Middle East (six per cent).

Michael Marx, chief executive of Development Securities, said: "London's attractiveness to foreign investors has clearly been undeterred by the widespread economic turmoil. City offices are perceived to offer quality and transparency – a 'safe haven' for foreign buyers who have, in turn, deepened liquidity in the market.

Article courtesy of Aviva PLC. Published 22-11-2011