London real estate is regarded as a safe haven by many international investors, it has been noted, with a large proportion believing the UK's capital is a good place "to park their money during a volatile economic environment". This is the opinion of Hugh Best, head of investment management at London Central Portfolio, who pointed out that the country's economy is in a better state than elsewhere in the world.
He added that it is not just fiscal worries that are driving investors to London, but also political stability. Mr Best explained that those based in the Middle East and north Africa are "keen to get into a stable environment" due to difficulties at home. This high demand coupled with low levels of stock has helped property values in the city edge upwards, a recent Knight Frank survey showed.
According to the organisation, prices in prime areas of the capital have increased by 9.6 per cent over the past 12 months, with July witnessing a 0.7 per cent rise over June this year. Meanwhile, rents for such properties have also gone up and are now one per cent higher than their previous peak in March 2008.
- Thursday 04 August 2011