The chief residential area in London is witnessing great interest from investors within the Middle Eastern market. According to CBRE, Middle Eastern investors have shown an increased interest in putting up their stake by 25-50 % in London after the election.
Before the election, Gulf buyers accounted for around 20% of the newly projected residential estate in the prime central area of London. Since then, the amount of inquiries to CBRE offices have gone up, and it is anticipated that the regional purchasers will soon total in at around 25-30% of the sales post election.
Head of the GCC Residential Agency, Safina Ahmad, stated that London continues to be the chosen destination for many Middle Eastern investors due to the stable legal and political framework, quality infrastructure, and the overall quality of life. London has often attracted official commitments from within the region, but at present, many buyers from overseas are purchasing property with the intention of keeping it as a second home.
Head of UK Residential Research of CBRE, Jennet Siebrits, stated that as the United Kingdom went into the election, there was a certain level of uncertainty regarding the outcome, with a potential hung parliament. This impacted the property market in Prime Central London at the time leading up to the actual election. Once the majority was announced to be Conservative, confidence came back to the market. London has already witnessed a strong rise in interest from the international market, especially from Middle Eastern investors.
The safe economic and political climate makes London constantly attractive to buyers. London is known as a financial hub, where buyers from all over the world feel confident enough to buy, feeling assured that their investment will be secure. There has been a continued request from international buyers who hold their property as second homes or as a base for their children and spouse to live in, while they are studying or working. Purchasing a property for this reason, rather than to rent out for 3-5 years, seems like a better option to many.
The interest in property within prime central London is likely to return to preceding levels as the demand reemerges. Prices are projected to grow by 7% by the end of 2015, with a forecast of 31% total growth throughout the upcoming five years.
London is merely one of several global cities that attract some of the most affluent buyers both locally and internationally. Due to this reason, London prices come right after Hong Kong for per square feet. The price falls at around $7,500 per sq. feet. This shadows average yearly growth of around 10% in the last decade.