Bankers shift to commercial property

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The Independent Online

A dramatic shift has emerged in the way London's bankers are investing their bonuses. They are turning away from flats in Belgravia and toward commercial property.

The Kensington-based consultant Khalil & Kane says wealthy City bankers moved away from prime, high-end residential properties towards income-producing shops, pubs, office and leisure investments that are relatively hassle-free and give higher yields.

The proportion of commercial investments against residential ones has rocketed from 26.5 per cent in 2007 to 68.25 per cent last year. At the same time the average transaction size has fallen.