Foreign Buyers Behind London Luxury Property Development Boom

Posted On Friday, 08 February 2013 23:49 Published by eProp@News
Rate this item
(0 votes)

London's luxury property has witnessed a £38 billion development boom lately, owing to the increased demand from European and Asian buyers seeking stable investments, while turning away from the troubled eurozone economies.

The number of upmarket housing projects in the pipeline in London has seen an increase of more than two-thirds during the past year, with 15,500 units to be ready for delivery by 2021, even though construction work in other parts of the country remains moribund.

According to EC Harris, the building consultancy, London homes would occupy an area equivalent to the 2.5 square kilometres Olympic Park in Stratford, and would have a market value of £38 billion, on completion.

London's prime property market continues to beat those in New York, Paris and Hong Kong. Prices of luxury property in London have risen 49% since March 2009, driven almost entirely by foreign buyers, according to estate agents Knight Frank.

Developers, private equity companies and wealthy individuals have been lured by this growth to invest billions into building luxury housing schemes. However, investors are actively converting commercial property into luxury apartment blocks in the smaller markets.

Mark Farmer, head of residential property at EC Harris, said, "London prime residential continues to act as a magnet for global investment, and offers clear opportunities for properly organised and funded developers and investors to generate healthy returns."

However, Farmer observed that unlike the previous property booms, much of the money coming into the sector was from long-term investors, such as pension funds, seeking a stable return.

"It is one of the most straightforward property markets in the world – if you buy something, you own it and no one can take it away from you", said Tony Pidgley, chairman of Berkeley Group, London's largest property developer by volume.

Source: EC Harris

Last modified on Sunday, 10 February 2013 10:07

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
Steve_Brookes_Balwin_Properties
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Young buyers driving residential property market in Bloemfontein

Mar 04, 2020
Bloem Willows
Bloemfontein is experiencing a surge in residential property transactions concluded by…

Hyprop bolsters Rosebank Mall offering through securing the Checkers Premium FreshX concept

Mar 04, 2020
Rosebank Mall
Shoppers at Rosebank Mall in Johannesburg can look forward to a world-class supermarket…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

City Lodge Hotels to list on A2X

Mar 04, 2020
City Lodge Hotel
City Lodge Hotels Limited (share code: CLH) has been approved for a secondary listing on…

Please publish modules in offcanvas position.