Overseas Property Investors Know A Bargain When They See One!
There has been a great deal of debate about the impact of overseas property investors and foreign nationals purchasing property within the city of London, driving up property prices and giving the UK housing market a boost.
Foreign property investors purchased up 75% of new residential property developments within the central London area during the last 12 months, although many developers argue that many of these residential properties would not have been built without the up-front cash from overseas property investors.
According to data from Knight Frank, foreign property investors also purchased 49% of all properties valued over £1 Million (GBP) in central London during the same timeframe, and new residential properties accounted for just 20% of these property transactions.
The 10 most expensive post codes in central London are SW1, SW3, SW5, SW7, SW10, W1, W8, W11, WC2 and NW1 had 3,477 residential properties for sale.
70% of these properties were valued over £1 Million (GBP)
Overseas property investors and foreign property buyers looking for a UK bargain are buying prime London properties for the kudos or they are actively opting for purchasing lower value residential properties in other vibrant and thriving cities in the UK.
Knight Frank point out that, although 49% of property buyers were not UK nationals, only 28% of residential property buyers were not UK residents.
The vast majority of overseas property investors and foreign buyers are either living in their purchased properties or are letting them out using reputable lettings and property managing agents.
These overseas property investors are targeting UK properties because they are able to get better returns on their property investment purchases in the UK than they can in their own countries. The UK property market is recovering slowly but all the forecasts are for a healthy period of property price growth over the next couple of years and the prospects are certainly attracting overseas property investors attention.
UK property investors should be able to spot the trend and identify areas of the UK that are already attracting overseas interest and they need to take action, or else someone else will be sure to beat them to it!
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