Specialist land markets grow
Foreign investors may soon be making a to take advantage of the London property market as the specialist market grows in popularity, according to Robert Noel, managing director of Land Securities.
Speaking on PropertyWeek.com's podcast, Mr Noel reported that the public markets in real estate are being polarised much more towards specialist businesses.
"Years ago, public property companies, listed companies, were amorphous masses of real estate, generally now they are specialist," he commented.
"You have the central London specialists, you have the retail specialists, even Land Securities which is focussed on two segments of the market, London and retail."
According to the expert, two decades ago businesses were "massively" diverse across the planet but now a broadly focused on their own domestic markets to keep shareholders happy.
"The danger at the moment is the localism bill which is on its way and the national planning framework have rather than simplified things, added another layer of bureaucracy into the planning process, just at a time when local authorities are facing unprecedented cuts and therefore planning officers are already overworked," he added.
Mr Noel singles out London as potentially becoming "more bogged down" than it has been.
He concluded: "In the provinces it is not quite the same as London. I think there is more encouragement for developers to come forward."
Property information company Mousetrap recently claimed that the London property market is being propped up by foreign investment.
Selwyn Lim, director at the group, commented: "The London property market is a safe place to invest cash... the London market will always behave very differently [to the rest of the UK]. At the moment, the robust nature of the London market can be attributed to this."