International investors looking for a safe haven away from the eurozone’s troubles are fuelling the UK’s real estate recovery, according to James Beckham, head of London capital markets at Cushman & Wakefield.
International investors looking for a safe haven away from the eurozone’s troubles are fuelling the UK’s real estate recovery, according to James Beckham, head of London capital markets at Cushman & Wakefield.
Research by C&W indicates that more than $20 bn (€18.8 bn) was invested in London in 2014, equivalent to the market’s previous peak year of 2007, with foreign investors accounting for 80% of the volume in the City and more than 60% in the West End.
New players such as Taiwanese life insurers Fubon and Cathay have been noticeably active, making investments of $200 to $500 mln as they apply the huge savings rates in Asia to international markets.
Beckham predicted the trend would continue through 2016, with London remaining an attractive destination because of its solid fundamentals compared to the continuing uncertainty in the eurozone.
He said: ‘We’ve got low vacancy rates, we've got strong tenant demand and we’re predicting that because supply is limited for the next two or three years, rental growth is going to continue all the way through for the next three to four years.
‘So the property fundamentals are fine and international investors are wanting to come into a Sterling-based real estate asset, keeping out of the euro because there’s a lot of risks attached about what's happening in the eurozone.’
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