Author : Editor
The Central London residential market is becoming increasingly attractive to Middle East investors, according to the latest Central London Residential Market report published by Jones Lang LaSalle, the leading real estate investment and advisory firm.
In 2011, the firm sold London new build residential property to foreign buyers valued at around $2 billion of which regional investors accounted for about nine per cent, up from 5pc in 2010.
The Middle East now accounts for the second largest group of foreign investors into the London residential market after nationals from the Asia Pacific region who accounted for 15pc of overall sales.
Despite the on-going global financial crisis and continued concerns over the euro, Central London's residential market continued to recover very strongly throughout 2011.
Over the past two years core locations throughout the UK capital have seen prices increase by an average of 10pc while outer core areas have seen growth of 6.9pc fuelled by a chronic undersupply of property in the best London addresses encouraging steady demand from both domestic and international buyers.
This growth is expected to continue throughout 2012. Jones Lang LaSalle estimates that Central London prices could grow by 4pc this year, 5pc in 2013 and peak at 8pc in 2014. Rents are also expected to grow by 7pc over the next 12 months and 8pc in 2013, providing a solid return for potential investors.
"Middle Eastern investors have strong historic links to the London property market and have typically invested for the longer term," said Jones Lang LaSalle director of residential agency, development and investment Ben Stroud.
"We are definitely seeing increased interest both in terms of volume as well as the variety of locations that regional investors are interested in. London continues to offer solid growth potential and its twinned status as an accessible capital city and financial centre, alongside a stable political system and transparent legal framework, continues to attract interest from across the Middle East.
"London's reputation as a safe haven for investors is being reinforced by global troubles, not undermined. Additional incentives such as a weak sterling and a favourable tax system are also making it more attractive amongst a range of potential foreign investors."
Source : gulf-daily-news.com
