Global property reports reveal that overseas continue to search for premium real estate in locations offering more than just excellent investment opportunities, such as lifestyle and education for the investors.
The Knight Frank report entitled: “International Residential Investments in London”shows that overseas investors channelled £2.2 billion into the new-build sector in central London in 2012 up from £1.8 billion in 2011.
A third of investors buying off-plan buy property with their children’s education in mind, planning to use at least one property for their children to live while they attend a London university.
According to Savills UK research department, in 2011/2012 overseas buyers accounted for one third of buyers in all prime London property and 58 percent in central London.
Overseas buyers are even more important to the development market, where approximately 65 percent of purchasers in prime London and 70 percent in prime central London are from overseas.
The report notes that two thirds of overseas buyers across prime London are purchasing their main residence, and in central London the figure is just under half.
In recent years prime central London has seen the strongest recovery, with prices averaging 22 percent above their third quarter 2007 levels.
Writing in the report, Gráinne Gilmore, head of UK residential research at Knight Frank, says London is hailed as a ‘safe haven’ location offering a transparent property market and property tenure is clear cut and underpinned by the legal system.
Source: Property 24