Where are buyers from Europe and Asia going to protect their investments from the fluctuating economies of the Euro zone? Many of the most cautious investors are heading to London, where there is a £38bn development boom in the most high-class neighborhoods. There are plentiful upscale developments in the planning due to the increasingly strong demand for expensive housing within London. Foreign investors are flocking to the capital in a bid to locate stable and low-risk investments that are not affected by the present turmoil we see going on in the international financial markets.
What's in the Plans?
The number of high-end housing projects that are either being produced now or in the plans for the near future were up by some 65% during this past year. If that's not impressive enough, another 15,500 units are being planned for delivery by the close of 2021. When those projects are completed, they will cover an area matching that of the 2.5 sq km Olympic Park located in Stratford, according to the building consultant firm EC Harris. What is the estimated market value of these properties? A mere £38bn!
Why Invest in London?
Foreign buyers love London. No doubt about it. But it is not for sentimental reasons only. The proof is in the pudding. London is a prime property market that consistently outperforms investments in other major cities such as Paris, Hong Kong or even New York City. Market prices in London's top selling market have risen nearly 50% since 2009, and they do not seem to have hit the top yet. This incredible growth has served to attract the most seasoned developers, savvy equity companies and individuals of high wealth as they stash their billions into London property. The market today is seen as ideal for long-term investors such as pension funds that will provide a stable and secure return.