LONDON, May 1 (Reuters) - U.S. investors are buying up

London commercial property at the fastest rate in eight years,

data compiled by BNP Paribas's real estate arm showed, lured by

signs the market in Britain is recovering faster than the

harder-hit United States.

Commercial property values and sales have plunged globally

in recent years - including in Britain - as soaring borrowing

costs and emptying post-pandemic offices have eroded

investments. Vacancy rates have jumped, especially in the U.S.

U.S. investor interest in Britain is growing, helped by more

appealing "leasing fundamentals" and a stronger dollar versus

the pound, BNP Paribas Real Estate said.

U.S. property markets remained mired in concerns about

sticky interest rates, a slower return to the office and

political uncertainty before the U.S. election, it added.

U.S.-based investors spent 1.9 billion pounds ($2.4 billion)

on London commercial property in January-March - up six-fold on

the prior year and the most since the final quarter of 2015,

according to the data.

"This positive uplift into this new cycle tells us U.S.

capital is firmly back in the market," said Fergus Keane, BNP

Paribas Real Estate's head of central London capital markets.

High-profile deals included MCR Hotels' 275 million pound

purchase of the BT Tower in central London, with the prominent

former telecoms tower to be converted into a luxury hotel, and

Elliott Management and Oval Real Estate's 300 million pound

acquisition of a mixed-use portfolio in the capital's West End.

Across Britain, U.S. investors spent 3.1 billion pounds on

property in the quarter, up two-thirds on 2023 and the most

since early 2022, BNPP said.

U.S. domestic political tensions were "certainly at play" in

the upswing in investment, Keane added.

Britain is poised to be the biggest beneficiary of U.S.

investment into real estate overseas, with $13 billion waiting

to be deployed, up from $10 billion in 2023, according to

separate Knight Frank research covering 19 major markets.

($1 = 0.7957 pounds)