London has been named as the best city in the world for foreign investment in the same week it was announced that foreign buy-to-let ownership in the UK is increasing quickly. UHY Hacker Young said that foreign landlord numbers grew by six per cent in the UK in 2013, and now the Association of Foreign Investors in Real Estate (AFIRE) has said that London pipped other cities to the post to be named as the number one global destination for investing in real estate.
It came ahead of more traditional hotspots around the globe like New York and Los Angeles. Some of the reasons for London's success include the fact that it has become something of a property safe haven in recent times. While other cities and countries saw prices tumble amidst the financial crisis, the UK capital's real estate market largely retained its strength throughout, seeing falls far lower than those witnessed elsewhere.
In the AFIRE list, London jumped from second place last year, overtaking New York and going into first place in the rankings. The rest of the top five was made up of San Francisco, Los Angeles and Houston. Chief executive of AFIRE James Fetgatter said the list is a definitive indicator of strength, drawing from the opinion of members from 21 countries around the globe.
"It's very easy to invest in London, there are no restrictions, the tax regime is good for foreign investors. And it's an international city so it attracts a lot of European, a lot of Middle Eastern and Asian money," he said. It is the first time, Mr Fetgatter announced, that London has topped the global rankings at any time since 2009.
And given the US dominance of the rest of the top five, it shows just how well London is regarded on a global scale as a real investment hotspot. On a country-by-country basis, however, the UK as a whole did not fare quite as well. Perhaps unsurprisingly, the US is seen as the top country to invest in, while Germany, the largest economy in Europe, took second place. The UK occupied third place on this particular list.
- Friday 24 January 2014