The think tank has forecast that property in London would increase in value by 2.4% this year and would rise by another 2.3% in 2013.
In comparison the CEBR has forecast falls totalling 3.1% in the North West and 4% in the North East over the two years.
The trend is being driven by soaring rents and wealthy investors spooked by the eurozone crisis buying property in London and the South East as a relatively safe bet, the CEBR’s report said.
Douglas McWilliams, chief executive of the CEBR, claimed that the effects could be further fuelled by the election of socialist President Francois Hollande in France.
McWilliams said: “Demand in the London market remains resilient with the ongoing eurozone drama piquing international interest in the capital.
“Furthermore, we can expect an abundance of affluent French citizens to be shopping for homes in London if President Hollande’s proposed 75% top rate of income tax is enacted.”
