Why are people from abroad investing in residential properties in central London?

London is an attractive location for all kinds of investors, drawing strong interest due to its status as a business hub, as well as its diverse cultural attractions and high number of jobs. However, what is it that encourages foreign investors to purchase properties in central London?

Seen as something of a safe haven, London investment properties are in high demand and seem to have a timeless appeal. After the recession hit, overseas investors were attracted by the opportunities presented by a weak sterling – but as the market has regained strength, this trend has continued.

Having weathered the recession well, London property is all the more appealing to overseas buyers, seen as a safe bet for sound investment opportunities. And upcoming developments, such as preparations for the London 2024 Olympics, are set to add to the location’s prestigious reputation and appeal.

Indeed, due to the limited supply available teamed with a growing population, the demand for homes here continues to increase. Therefore, the value of residential properties in the area is high and holds the potential for strong yields for owners.

London rents have recently hit all-time peaks, which can contribute to their attraction among foreign investors. Similarly, the high demand for homes in the capital means that landlords should be able to easily find tenants to fill their properties, making it easier to gain a steady income from them.

And of course, renting homes out is not the only option available. Indeed, investors can purchase a house or flat in order to sell London property at a later date once it has accrued value.

However, what exactly is it about London that makes it such a high-demand location for housing? London is a world hub for businesses, as well as education – something that generates a lot of overseas interest.

Businessmen are drawn to the capital by its strong transport links, time zone and ties to international trade, while students from all over the world flock to the city to enrol at its prestigious educational institutions.

And of course, many people come to the capital in order to benefit from the number of employment opportunities it has, which adds to the pressure on the housing supply.

In addition to its business, employment and educational strengths, the capital is also renowned as a cultural destination. This combination, paired with the short supply of residential properties the city is home to, contributes to the overall demand for homes – something that shrewd investors can take advantage of.

So, what should investors be mindful of when searching for a residential property in London?

Among the key points to consider when looking at any property in the capital is its proximity to transport links and other amenities. Often referred to as the ten-minute rule, potential investors are encouraged to select houses or flats near to grocery shops and tube and bus stations, as well as entertainment such as restaurants or cinemas.

Meanwhile, thoroughly researching the area before going ahead with the investment is also crucial. Points to watch out for are signs of local developments or regenerations, such as new shops or public services like libraries or attractions, while investigating the crime rate can also be a good idea.

Companies such as Residential Land can help overseas investors find suitable properties.