LONDON, UNITED KINGDOM–( Marketwired – Oct 4, 2013) – UK property investors are starting to look for opportunities outside London as foreign money floods into bricks and mortar in the capital.
Businesses that had been putting off office moves to save money were also coming under pressure to relocate to grow, leading property agent Knight Frank said as it announced its annual financial results, Profit before tax was up 7pc to GBP 102.7m, with turnover increasing 5pc to GBP 350m, in the year to the end of March. Earnings were buoyed by prime London real estate transactions.
Official figures recently showed property prices in the capital were rising at nearly 10pc a year.
Alistair Elliott, Knight Frank’s senior partner and group chairman, said: “Foreign money dominates investment in London property, although UK funds are reviving their interest in the regions.”
Gary Grosvenor, London and London Developments director said “a steady stream of foreign money over the last decade is pushing London property prices to new levels it is for this very reason’s LALD (London and London Developments) has created a bond to allow the investors of all sizes to seize on this opportunity in the capital.”
Mr Grosvenor said “In the UK, the prime London market continues to show strong activity and a steady rise in values, this all makes for a compelling reason to consider a property bond paying 8% per annum.”
Mr Elliott of Knight Frank went on to say “the year had seen a strong recovery in appetite for commercial and residential property, with its own survey revealing one in four “high net worth individuals” in the world wanted to increase their exposure to the sector in 2013.
“While international demand has remained strong, the resurgence of domestic demand, fuelled by improving conditions in the UK economy, has added impetus to both activity and price growth.
“On the commercial front, there is increased demand for office space from the technology and media sector as more businesses seek a collaborative working environment.”
But varying economic conditions around the world including a slowdown in China affecting Asia meant markets were more challenging.