London has long been the most popular property investment destination in Europe for many foreign buyers, but has now been overtaken by Paris as a result of weakening interest in other locations due to the Eurozone financial crisis, according to a report by CBRE on commercial property investment.

A surge in investment activity in the final quarter of 2011 meant that investment in Paris jumped from €3.6bn in the first half of the year to €7.9bn in the second half, resulting in the first change in the top two of the rankings since CBRE began compiling the list in 2004. But investment in central London in the second half of 2011 was far from subdued at €7.8bn.

Nordic cities and various areas in Germany are also attracting more attention thanks to their comparatively more responsible financial management and stability. Russia is also gaining in interest, overtaking Berlin for the sixth slot on the list of most desired locations.

Direct commercial real estate investment in Europe in the second half of 2011 reached €62.9bn, just shy of the €63.1bn that was transacted in the second half of 2010, but 14% up on the first half of 2011. Total investment activity in Europe reached €118bn in 2011, a 7% increase on 2010.