Foreign investors attracted to London properties
International investors are increasingly making a business money transfer to snap up London properties, according to Property Investor News.
Overseas buyers view London as a safe place to put their money, with the capital likely to offer a significant return on investment.
"Just as in the early 1990s, many international investors are continuing to be attracted to London residential property because it is viewed as a solid long-term safe haven," commented Richard Bowser, editor of the monthly magazine.
"Many overseas buyers have also been attracted, as they are buying with greatly increased purchasing power as a result of the 25 to 30 per cent decline in the pound against most global currencies since early 2007."
His comments follow a recent report by Knight Frank, which says that ongoing major redevelopments in the city could see nearby property prices spike by 30 per cent before 2016.
"The infrastructure improvements led by the Crossrail scheme will act as growth triggers in some specific locations, as the Knight Frank report underlines," added Mr Bowser.
He explained that those who put money in such locations are more likely to see their investments outperform the average over the longer-term.
While the expert did say that there are risks with making forecasts at the moment due to the unresolved eurozone crisis, he pointed out that London rental properties have seen a 23 per cent increase in average rents over the last two years.
He remarked: "London is and has been a long-term magnet for residential property investors, as it has produced an increase in average property values of around nine per cent per year over many years."