Hedge funds have been increasingly looking to the UK when investing in real estate, an expert has claimed.

Hedge funds have been increasingly looking to the UK when investing in real estate, an expert has claimed.

Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, has asserted that Europe has been behind Britain in this respect for some time now, partly due to the weakness of sterling.

"UK real estate has become quite an attractive investment when compared to euro denominated assets," he stated.

The lack of development in the central London market during the last few years has fed through to the rental sector for commercial property, he added.

Mr Gilmartin said that there has been a lack of supply for high-grade A-quality office space during the last few years, which could lead investors to look at these products.

Recent figures published by Knight Frank revealed that prime City rents are due to rise by 19 per cent in the next 12 months, to £52.50 per sq ft.