The $1.5 Million Studio

Using data from London-based real estate group Knight Frank, BusinessWeek.com identified the 20 most expensive markets in the world and what you can buy in those cities' prime areas with $1.5 million. In London, where at $6,191 the average price per square foot is the highest in the world, your $1.5 million would buy only a small studio in the smartest parts of town. In Venice, on the other hand, despite limited building space, your money goes a bit further, getting you a two-bedroom apartment or more near the Grand Canal. (Of course, in less illustrious neighborhoods, your money goes further still.)

British Land faces tough year as London slows

British Land saw £1.9bn wiped off the value of its net assets as it fell victim to the fall in the underlying commercial property market.

Although the UK's second largest real estate investment trust (Reit) outperformed the market, it still saw the value of its net holdings drop 20pc to £6.9bn. The company made a loss before tax of £1.6bn. Underlying profit, which strips out changes in property valuation, was up 10.5pc at £284m.

British Land has seen £1.9bn wiped off the value of its assets as the downturn in the commercial property market persists.
British Land's 201 Bishopsgate and The Broadgate Tower in the City of London

South Africans ease gloom in the City of London

It will take 107,000 sq ft at the 240,000 sq ft building which completes in September. The bank, advised by Spring 4, will relocate from its existing office at Cannon Bridge House where it has a lease expiry in September 2009.

The terms of the deal have not been disclosed but it is thought to have agreed a rent of around £57.50/sq ft on a 10 year lease.

The deal will be a significant boost to the City of London occupational market which has seen little letting activity in deals of more than 50,000 sq ft since the start of the year.

Banks play UK real estate debt roulette

Banks are playing with fire by delaying foreclosure on UK commercial property borrowers who are in breach of their loan terms.

Property finance professionals say hundreds of loans secured against many millions of pounds of commercial properties are in breach of terms called loan-to-value covenants the result of a 16 percent nosedive in values since last summer's market peak.

These covenants tie the loans to a percentage of the value of the asset they are secured against. Breaches triggered swift foreclosures and repossessions in previous downturns. This time many lenders are waiving those rights for fear of being saddled with assets they can't sell.