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International buyers investors buying up London’s prime new build property, research reveals

Property Wire

The prime London new build residential market is now being driven almost exclusively by international buyers, generating a net £1.4 billion inflow of equity in 2011, according to new analysis from international real estate adviser, Savills.

This means that its dynamics have more in common with Hong Kong and Singapore real estate than with the wider UK property market, it says in a new report.

Much of this overseas equity has been generated from off plan sales, prior to completion and helped to forward fund some of the significant projects that are changing London’s skyline and helping to regenerate significant areas of the capital, the report points out.

As recently as 2009, UK buyers accounted for three quarters of the prime London new build residential market but, in 2011, almost two thirds of buyers, some 63%, were international.  At the top end of the market, international buyers were responsible for 88% of all new build sales in the prime central area worth over £5 million.


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