Two London letting agents have just returned from a tour of the Gulf region and Far East to advise investors wanting to buy rental properties in London.
With overseas investors currently snapping up London properties, Anita Mehra and Marc von Grundherr, directors of Benham and Reeves Residential Lettings, met both seasoned investors expanding their property portfolios and those planning their first UK rental investment.
During the trip, which covered Abu Dhabi, Dubai, India, Kuala Lumpur, Singapore and Bangkok, the pair held one-to-one meetings with over 100 independent financial advisers, wealth management agents and individual investors, and encountered an unprecedented level of interest.
More than 60 investors also attended the firm’s property investment seminar held in Kuala Lumpur, and a radio station and local press interviewed the agents to talk about the benefits of property rentals in London.
“Current demand is fuelled by a number of factors,” said Mehra. “The exchange rate is a driving force, making many homes 20% cheaper than in 2006.
“Strong rental demand is another, with London remaining a focal point for global corporations, attracting increasing numbers of overseas executives here on secondment.
“Adding to the demand for rental accommodation is the growing number of international students. There are around 285,000, some 25% more than two years ago. Many investors are buying a property for their sons or daughters coming to London to study.”
She said that properties, particularly in new developments, are letting quickly and landlords are seeing a steady increase in yields. Foreign investors also see London as a safe haven for their money.
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