FOREIGN property investors are snapping up commercial property bargains at auction as prices are slashed up to 20 per cent.

Foreign investors benefit from low income tax and reduced stamp duty and capital gains tax can be avoided. During the downturn, prices were reduced by as much as 20 per cent making commercial property particularly attractive.

Chris Baguley, director at Auction Finance Limited says commercial property prices at auction can be far below market value:

"High investment demand, teamed with a limited availability of quality property will push prices of property up in the next year. At the moment, there are still bargains to be had at auction and foreign investors have been at the forefront of the investment, taking advantage of reduced prices.

"Investors should do their homework, looking at the area and achievable rents before making any bids at auction. On the right property, high yields can be achieved, giving much better returns than bank accounts. Rental growth continues to be strong due to demand from tenants."

Property adviser CB Richard Ellis (CBRE) will publish research later this month showing 73 per cent of commercial property purchases by value in central London last year were made by foreign investors.

Auction Finance Limited considers lending applications from foreign nationals, who have a UK bank account.