Culture, communities, friends and family all influence purchaser location preferences. South Asian – mainly Indian and Pakistani – buyers (who are more likely to use a property themselves rather than
buying for investment) often settle in areas to the north and west of London, including Wembley and Southall, or East Ham, Manor Park and Upton Park in the east, where there are established South Asian communities.

Indian High Net Worth investment in prime central areas also demonstrates the increasing buying power of this market. A pied-à-terre in London is a lifestyle choice for many South Asian entrepreneurs, favouring properties with concierge services enabling them to confidently lock-up and leave at their convenience.

Overall, buyers in the new build London market (both prime and mainstream) are equally motivated by the prospect of investment as well as their own use of the property.

The UK, US and South Asian markets are more likely to be owner-occupiers, living and working in London, while investors are mostly from Africa, China, Pacific Asia, and the Middle East (see Graph 4).

For buyers from emerging or newly industrialised economies,
putting their money overseas and particularly in London property
is an important part of diversifying investments and safeguarding
their cash.

The absence of barriers, compared to other markets, on entering or exiting the London new build residential market supports inward investment from overseas.

London’s cosmopolitan appeal together with its perception of safety and security are important factors to international purchasers.

Trust in the UK legal system as well as familiarity with its process among buyers, particularly from Commonwealth countries, facilitates property purchasing.

New build property also appeals to overseas investors as an asset that can be managed from afar. With property management options and product warrantees, it is possible to administer their investment from home, no matter the distance.

Taken from
Spotlight: The World in New London