Investors ‘rely too heavily’ on prime locations

European property investors are so spooked by the sovereign debt crisis that a blinkered focus on the best neighbourhoods of London, Paris and Berlin means they are missing much better deals in far-flung locations.

While the most popular districts of Europe’s financially strongest cities are the safest bet given the markets’ resilience, elsewhere there is more money to be made on high-yielding assets with stable tenants on long leases.

“You can’t assume all property outside the best areas is junk,” said Matthew Richardson, of Fidelity Worldwide Investments.