Home Residential Property Overseas buyers in diversifying boost for London property

Overseas buyers in diversifying boost for London property

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23rd Oct 12 1:03 pm

It is not just Central London locations that have foreign buyers flocking to London.

London construction firm Telford, today announced that 40% of its business had come from abroad this year.

Much of it was centred around company’s luxury housing developments in East London, which has not traditionally been as popular with foreign buyers as better known London hotspots like Kensington, Mayfair and Westminster, the firm said.

Investors from Hong Kong, Malaysia and Singapore topped the list, in part because of their seeming willingness to buy “off plan”or pre-construction developments.

“We are typically selling schemed two or three years ahead of completion, which derisks the scheme,” says Jon Di-Stefano, chief executive of Telford Homes. “We wouldn’t want to give the impression we are relying on overseas sales but we can do well in that market place.”

Most overseas buyers seem to hold onto the properties for 20 to 30 years and either use them as a second home or as a buy-to-let investment, Di-Stefano explained. The source of secondary income was behind much of the overseas demand for new London homes as investors seek a safe haven from trouble in the Eurozone and elsewhere, he added.

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