Demand for central London property tipped to grow
central London properties is tipped to grow
More and more property investors are expected to secure assets in central London throughout 2012.
According to London Central Portfolio, many investors who have not yet purchased a property in the region will probably choose to do so this year. The organisation said this is because the city is increasingly being viewed as a safe place in which tie up funds.
Naomi Heaton, chief executive of London Central Portfolio, believes the surge in demand will therefore drive up the prices of properties in this area over the next few months.
"Investors who are already holding real estate in prime London central do not see a better place to park their money as they pursue a strategy of wealth preservation with potential upside and avoid the more speculative equity markets," she commented.
Ms Heaton noted that much of the current interest is coming from overseas, which suggests many investors will be looking to transfer money to the UK before they make a purchase.
She described residential property in the heart of London as a "very desirable" option for cash-rich buyers, as any high net worth individual would be interested in the advantages of owning a building in this area.
Ms Heaton said London appeals to people because it is widely visited, has a highly "cosmopolitan" society and is the UK's cultural and financial hub. As a result, those from other countries tend to feel very comfortable in the region.
The expert added that the city's strong popularity with foreign investors at the moment is unsurprising, since somebody somewhere in the world will always be generating wealth.
As a result, real estate in London could continue to attract lots of interest from foreign investors, even when conditions in many of the world's major economies are depressed and subdued.
"There are more well-to-do people internationally than there are in the UK," Ms Heaton remarked.