REVEALED: Where and where not to invest in property in 2012

23 May 2013 Updated at 9:50 AM UAE

REVEALED: Where and where not to invest in property in 2012

HOTSPOT - London, UK.

With strong growth forecasts of 5 percent for 2012 and 23 percent over the next 4 years, prime London property continues to attract foreign investors. Sales volumes increased 85 percent over the last year, as a result of 11 percent price growth and rental demand remaining strong. Rental forecasts from Savills indicate growth of four percent this year in Greater London, but the strongest growth is expected in smaller properties that are less centrally located. According to consultants Jones Lang LaSalle, smaller flats saw rental growth of 17.1 percent during 2011. Demand will continue to be highest here, as tenants seek better affordability during 2012.

Thursday, 15 Mar 2012 8:12 AM

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Posted by: Nigel Wright Tuesday, 3 April 2012 4:07 PM[UAE] - UK

I am fascinated by this report as it seems to have come as a surprise to many foreign investors. With 35 years experience of the UK real estate and financial markets, I would caution readers against generalisation. Over the past 12-15 months there has been a massive leap in Central London prime residential values, driven almost exclusively by foreign buyers. Their appetite has not been driven by fundmentals in the UK but rather by concerns they have about their own markets. True, the UK is a relatively safe haven and London is a magnet for the super-rich. From this point in the cycle however I would urge greater caution. Yes, there will still be substantial rewards available to investors in the London market who know what they are doing, but first timers with deep pockets should be careful and head first for the best advisors locally for genuine, unbiased views. Be careful out there!

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