Since the recession, real estate investment by foreigners has become an increasingly important part of London's property sector, one expert has claimed. Ed Mead, director of Douglas and Gordon, explained that the number of transactions being carried out has dropped by more than 50 per cent since the UK's economic growth stalled, which makes investors from overseas all the more important.
He noted that foreign buyers "now probably account for more than half the transactions in the centre of London", whereas before this was closer to 25 to 30 per cent. Mr Mead also stated that the city is still considered one of the three main centres in the world, along with New York and Tokyo. While he acknowledged that places such as Moscow, Abu Dhabi and Mumbai are making headway, he does not believe this will affect the UK's capital too much, stating: "I think it will be a long time before London is overtaken as what I describe as a global leader."
Last month, head of investment management at London Central Portfolio Hugh Best commented that many foreigners are currently attracted to the London real estate market due to favourable exchange rates, while others are looking for a "safe haven" for their money during times of economic or political turmoil in their home nations.
- Friday 02 September 2011