International investment will boost London property values

the london eye
The London Eye Image credit: Property Division
the london eye
The London Eye
Image credit: Property Division

Demand for commercial and residential property from overseas investors will see values in London continue to rise, according to real estate advisory specialist Colliers International.

Walter Boettcher, director of research and forecasting at the firm’s London office, says the increasing weight of international capital, improving debt availability and the Bank of England’s record-low base rate mean values will continue to rise.

But he adds that the timing of interest rate hikes and geopolitical risks could threaten the current cycle.

Investors’ interest in real estate has soared due to property typically offering higher returns compared with bonds or equities.

Cross-border investment worldwide reached £280bn in 2014 and Colliers believes it could overtake the £366bn reached in 2007 as countries such as China step up their investment overseas.

But the firm warns that there is a danger of “too much money chasing too little assets” and said investment in large infrastructure projects as airports and universities was vital to help boost economic growth and strengthen the property cycle.

About the author:

The property industry has always, and continues to, interest me. Since joining Plaza Estates in 2008, I have learned a great deal about the market. My role involves advising clients on their purchases (together with our sales teams), managing refurbishments for them (together with our management and design team), preparing the property for rental (together with our rentals teams) or sale, and being responsible for the company’s digital marketing. Through all this, I have viewed the market from different angles. The market is always changing, and it is essential to adapt as it does so. This is something Plaza Estates has always done.
Previous articleMayfair owners put property assets under lock and key
Next articleEstate agents warn of sales slide despite rise in stamp duty revenue