Foreign investors keenly interested in London property

Posted under News by Jermaine

Foreign investors are getting increasingly attracted to the UK commercial property market, courtesy sterling devaluation and tumbling prices of assets, say industry experts. As per the leading property index IPD, fall in capital values from the UK peak in June 2007, is 39.5%. This figure goes up to 60% in the US and Eurozone due to fall in pound’s value.

The investors are also attracted by lease period of 15 years in the UK as compared to just 6 to 9 years prevailing in the continental Europe. It provides them enhanced income security.
Fund managers, leading developers, bankers, agents and politicians who attended global property conference Mipim in Cannes, remained focussed in their discussion on foreign investment in the UK.
Experts believe that overseas buyers’ increased buying activity could help in revival of Europe’s worst affected UK property market.

Major part of foreign investment is expected to come from German, Middle Eastern and Far Eastern Groups as well as Spanish funds, which had previously taken advantage of falling values in 1990s recession.
Investors will be primarily eyeing prime property in London, considered to provide guaranteed income even during financial crises.

London had major representation at Mipim conference. Norway’s sovereign wealth fund has already shown keen interest in investing $20bn into the UK property market.