Favourable demand picture keeps Middle East interest high in London property
London population seen surpassing 11.3 million by 2050, from about 8.9 million now
Crossrail project, regeneration work underpins demand for outer London property
DUBAI, 1 March 2015 - London remains an attractive destination for Middle East investors looking to expand their property portfolio, according to a new report from property investment firm IP Global.
A number of outer London locations are showing particularly high potential for strong returns as price growth spreads from the city centre.
The U.K. capital's population has just surpassed its 1939 peak of 8.9 million, and is now expected to reach some 11.3 million by 2050. The city meanwhile continues to wrestle with a housing shortfall that is a long distance from meeting demand.
While the end of 2014 witnessed a small slowdown in growth, this should be put in the context of an average price increase of 11.1% throughout the year amid lingering uncertainty over Stamp Duty and Mansion tax proposals as well as traditional investor caution ahead of the general election. Forecasts still point to growth of 22% in the years up to 2019.
Of particular note, places like Lewisham, Sutton and West Drayton have the potential to outperform given significant regeneration work being undertaken, strong local economies and the coming arrival of Crossrail, a new high frequency, high capacity railway for London and the South East.
According to IP Global, Ilford, situated northeast of London, is shaping up as one of the best locations for property market returns. The town forms part of a significant commercial and retail centre surrounded by extensive residential development, while thousands of commuters a day take advantage of Ilford's convenient location to travel into central London. Property prices are predicted to surge when Crossrail arrives.
Paul Preston, Director, Head of EMEA at IP Global, which has offices in Dubai and Abu Dhabi, said:
"Investors in the Middle East have an emotional draw to London - people understand the market and see it as a great place to travel to and enjoy the British heritage. I personally think that more and more people are buying property in London for investment purposes, whereas in years gone by the trend was for GCC buyers to purchase real estate in London more for personal use."
For further information please contact:
Tim Falconer, Bell Pottinger
Tel: +971 4 375 2691
Email: Tfalconer@bellpottinger.com
Iain Munro, Bell Pottinger
Tel: +971 4 375 1529
Email: IMunro@bellpottinger.com
Nader Alsaggaf, Bell Pottinger
Tel: +971 4 433 6111
Email: NAlsaggaf@bellpottinger.com
About IP Global
IP Global is an end-to-end property investment company that sources worldwide real estate with growth potential. The unique IP Global model offers early stage financial commitment to developers and enables international investors to strengthen their portfolios through property.
IP Global's team of international property professionals are experts in every aspect of their field. The IP Global approach uses rigorous research to identify opportunities and streamlines the entire process of property investment. IP Global is dedicated to building long-lasting partnerships and makes a strong financial commitment to every investment property it recommends.
© Press Release 2015
