Indians
accounted for over half the investment flow from overseas into the central
London property market, according to latest figures.
A
property analysis report by commercial real estate services & investment
firm CBRE found that Indian investment accounted for 55% or £ 241 million of
overseas investment in the second quarter of 2014, in contrast to 2013 where no
land was purchased by Indian investors.
“Overseas
investors have shown strong interest in development opportunities in Central
London during Q2 2014, supported by strong market fundamentals and the
recovering economy,” said Mr. Peter Burns, ED, Central London Development,
CBRE.
“As
a result of this growth, investor appetite for development opportunities
including residential is expected to remain strong. There has been continued
growth in the London residential market since the financial crisis & strong
demand for residential-led land sales has caused demand to spill out into
markets such as Southbank and west London,” he added.
The
‘Central London Property Market Review: Cautious Optimism’ report released by
CBRE South Asia points out that Indian investors have been acquiring large lots
mainly for residential conversions.
India
Bulls’ purchase of 22 Hanover Square for £ 155 million was the largest deal in
the second quarter of 2014. This followed the acquisition by the Lodha Group of
New Court in Carey Street in early 2014 for £ 90 million and of 1 / 3 Grosvenor
Square for £ 306 million last year.
Both
schemes are due to be converted into residential developments, with the Carey
Street scheme set to deliver 148 new flats.
The
year has seen general heightened activity in land acquisitions from overseas
purchasers in central London, accounting for 53% of take-up in the second
quarter, with a large proportion (42%) flowing from Asia.
-
PTI
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