THE fundamentals of a normal commercial property investment market are returning to London.
To some, the demented activity of last year's investment will be missed but, to the agents-advisers, the return of the basics is cause for relief.
Once again, an investment property's criteria - its location, quality of building and rental growth - will be the investor's first consideration.
The reason for this reversion? Bond yields at their peak at eight per cent and currently at 7.4 per cent have made property investment purely for the sake of a secure income no longer worthwhile.
Only buildings in their prime and selected trophy buildings are likely to be sold on a bond or over-rented type basis.
The market was moving to a stage where deals would fit into four main categories, predicted Tony Horrell of property agents Jones Lang Wootton.
