Real estate buyers around the world are becoming particularly keen to invest in property in London, new figures have revealed. According to property consultancy EA Shaw, international buyers are increasingly moving into the capital's residential market, with homes in central locations proving especially popular.
Lisa Hollands, head of residential at the group, said this is because the city is widely viewed as a "safe haven" by investors - in particular those from eurozone countries. Since the ongoing debt crisis in the financial bloc is showing no signs of abating, she believes homes in central London will remain popular with foreign property buyers over the next few months.
"Looking at the continued political instability within Europe, the residential market is set to strengthen further during 2012," Ms Hollands commented. Statistics from EA Shaw showed that this surge in demand for homes in the region is driving up house prices. Indeed, the group stated that property values have gone up by one-quarter in the last three years - a figure it described as "staggering". House prices in central London increased by seven per cent during 2011 and EA Shaw expects to see a similar surge take place this year.
Many international buyers were found to be keen to take advantage of the city's healthy rental market. Figures showed that international tenants were responsible for more than two-thirds of the properties let in central London between January and March 2012. As a result, they were able to benefit from a 3.7 per cent surge in average rents during this time. This backs up recent observations from Cluttons, which said conditions in the wider UK economy do not appear to be deterring long-term overseas investors from the central London residential market. The organisation stated it is seen as a good place in which to safeguard and grow wealth amid the eurozone debt crisis.
- Monday 28 May 2012