A flurry of Middle East investments have been seen in the London real estate market in 2009 with Oman sealing the biggest deal of the year, Dubai-based Asteco said on Thursday.

Foreign investment in the property market of England's capital city has accounted for 40% of transactions so far in 2009, compared to 31% in the same period the previous year, Asteco's global partner Savills added.

Richard Angel, International Investment at Asteco, said: 'Middle East foreign investment has accounted for the most recent outflow of capital into London.'