Real estate investment in London. The long-term prospects

London rightfully occupies a leading place among investors from all over the world as a place for reliable and profitable real estate investments. However, analysts fear that a long-term investment in real estate in London can be threatened.

Foreign investors now actively buying up commercial property in London, which significantly affects the price, contributing to its growth. Very high popularity among foreign investors uses and residential property in London, which provides a stable rental income itself increases in value, showing capital gains.

Legal company Nabarro has published its report called “Global appetite”, which reflects a remarkably positive Outlook for investors in property in London for the next two years. According to the company, approximately 73% of investors intend to increase the share of their impact on the property market in the UK in the next two years. But in the next 10 years, the number of investors can be reduced to 45% .

Investment attractiveness of the BRIC countries, Latin America and South-East Asia will increase in the coming years and it is logical that part of the attention of investors will switch to emerging markets.

However, the status of the UK property market as the most stable real estate market from the point of view of the investment climate, confirmed that 79% of investors. For them it is a key factor for investment. About 73% of investors believe that the decisive factor in the popularity of the London property investors is its liquidity. Approximately 66% of investors are attracted by the accessibility and availability of market data, 62% said that a strong, transparent legal framework contributes to sustainable investments in London real estate investors from around the world.

In the review of Nabarro was made look at the long-term demand, which is the basis of real estate investments. A study conducted by Nabarro, has revealed a tendency to sign long-term leases in exchange for lower rents. In such circumstances, it is clear that such a situation could compel investors to seek higher returns in emerging markets in the long term.

The reasons for that is of concern to investors in the long-term attractiveness of the UK property market is called a possible British exit from the European Union. There are specific problems, for example, investors from India, who fear the tightening of immigration policy.

Thus, digging Nabarro send the UK government a clear message in his report: what needs to be done to preserve the attractiveness of your property only in the medium and long term, but in the long term. Positive changes are already in place. But the UK government have to persuade investors that the UK will remain the same attractive tax regime, a reasonable migration policy and EU membership. In this case, the UK will be able to hold the palm as the country with the best investment climate in the world and will be able to survive in competition with emerging markets to attract global investment.

® Helen Entree. 30.06.2013