Foreign investors are targeting London’s new investment hotspots

15 June

In London, prime central areas like Mayfair, Chelsea and Kensington have been attracting foreign investors for decades. Yet with price increases in such areas not performing as well over the last few years some are turning to the capital’s new property hot spots for large properties in order to ride a sharper price curve.

Where are the ‘must have’ districts?

South West London has outperformed London’s prime central market with price increase over X HOW LONG? X of 2% compared to 1.6%. In 2013 new boroughs rose to the forefront of foreign investor’s minds and some may raise an eyebrow or two. Dalston, Streatham and Herne Hill have seen their average house prices go beyond the £1m mark and by 2018 other hot spots are expected to appear. Earlsfield, Brixton, Hornsey and Kensal Rise have been marked for prime jumps.

Who is investing?

Many nationalities are attracted by London’s prime properties. Among them are Chinese who are willing to invest between two and £50m in new build properties. Their motivations are the quality of education their children can benefit, new opportunities (compared to Chinese slowing economy), lifestyle and culture. Mideast buyers are also in the run for prime properties, looking for various amenities such as concierge service, leisure facilities. The amount of purchases (£10m+) from Mideast investors has increased by 5% this year. Buyers are younger: a fifth of them is under 40, whereas last year they were only 10%.

Regarding current events, are you taking a risk in investing in London properties?

UK has been –and keeps on being- an investment safe haven these times. Remaining at bay from Eurozone main issues, such as the famous Grexit, the country has shown calm strength. The UK’s growth for Q2 2015 amounts to 0.7%, held by exports and business investments. As another proof of the UK’s safe economy, Mark Carney (BOE’s governor) asserted that in spite of Chinese recent events and the threat of a storm in the financial world, monetary authorities are likely to hold on their timetable. This shows the professionals’ confidence in the UK economy; investment is likely to generate profitable returns.

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