Investors from overseas spent £2.2 billion on newbuild properties in 2012.
- International investment in newbuild real estate in London totalled £2.2bn
- This is an increase of 22% from 2011
- The majority of international investors came from Singapore (23%)
International investors have spent more than £2.2 billion on real new real estate projects in London in 2012.
Knight Frank revealed that money from overseas has helped boost the property market in the capital last year in its International Residential Investment in London report.
In 2011, the amount of money spent on newbuild properties in the city reached £1.8 billion, which demonstrates an increase of 22%.
Neil Batty, Head of International Project Marketing at Knight Frank, said: “Overseas investors will continue to play a vital role in the acquisition of prime central London newbuild homes in 2013.”
He stated that they are inclined to buy real estate in the city due to the UK’s strong currency and its history of capital appreciation.
Head of UK Residential Research at Knight Frank Grainne Gilmore added: “The economic and financial changes since 2007 have created a fresh model for overseas investment in new-build property.”
People from 52 nations bought recently-built property in the capital last year, with the most active investors coming from Singapore. The report showed 23% of international investors were from this country, followed by those from Hong Kong (16%), China (5%) and Malaysia (4%).
Earlier this month, Knight Frank revealed its Property Year in Review and 2013 Forecast, reporting that the central London market grew by 9% in 2012. This has resulted in a 34% price increase in real estate in central London over the last three years.