But consultants warn against complacency towards foreign investors
The proportion of overseas investors who rank London property in their top investment class has risen over the past 12 months, according to new research.
Cluttons International Private Capital Survey 2012 found that some 57% of foreign “high net worth individuals” (HNWIs) categorised London in that way, an increase on last year’s figure.
However the international property consultants and chartered surveyors warned that a high proportion of those people who gave London a top ranking already had close ties to the city and that there should be no cause for complacency.
It said HNWIs in Bangkok ranked London below the Myanmar capital of Yangon, while their Indonesian counterparts looked to Singapore and Australian residential
Cluttons senior partner Bill Siegle said the latest survey had some unique and surprising insights on the investment mindset of the wealthy.
“Quite remarkably, 43% of these highly mobile investors state that the global financial crisis has had no impact on their view of London as a top investment target location,” he said.
“In fact, almost a third go on to claim that London is better-placed because of the Eurozone difficulties.
“The fundamentals of the London economy remain strong: the city attracts dynamic businesses and skilled professionals from around the globe. This gravity effect underpins the city’s appeal to wealthy individuals looking for investment opportunities in the next 12 months.”
However, he added that the survey showed there should be no room for complacency in the London property market.
“Private individuals in Dubai felt there would be less outflows of capital from the United Arab Emirates over the next 12 to 18 months as the UAE’s economic recovery gains momentum,” he said.
“Furthermore, the bulk of Asia Pacific HNWI increasingly are expected to look at their home markets more favourably.”