Overseas investors and property buyers purchased over half of all the homes for sale in some of the most exclusive postcode areas of London in the final six months of 2017. This buying frenzy is continuing through 2018. Many investors are taking advantages of huge cash discounts and price drops on properties in locations like Kensington and Belgravia.
One important consideration for any overseas buyer, though, is acquiring the services of a professional and knowledgeable property management service provider for homes and apartment blocks. Managing rental properties from global locations really does not provide the levels of service or reliability required by tenants.
Reasons overseas investors are flocking to buy London properties
There are a number of reasons why foreign investors are choosing to buy residential properties in London:
Many of the foreign investors opting to buy London homes are from Asia or the Middle East. A report which has just been compiled by the London School of Economics (LSE) looks in detail at the prevalence of overseas buyers for London newbuild properties.
The total figure for London homes sold to overseas buyers amounted to around 30% in 2017, although it's been noticeable that European property investors have declined considerably since the Brexit decision.
When it comes to larger London property acquisitions and developments, overseas investors display a huge appetite for real estate in the City. The ABIL Group is an Indian property developer which has recently purchased 5 Strand in central London for conversion into a 200-bed hotel, complete with offices and retail space. One Nine Elms is a huge development featuring twin skyscrapers and a hotel which was bought by Chinese developers Guangzhou R&F Properties. Country Garden, another Chinese developer, has just announced the purchase of a £400mn residential project.
Importance of London-based property management services
Any overseas property owner is well advised to utilise the services of a reliable property management company. This is the case whether the investor owns just one buy-to-let residential home or entire apartment or commercial blocks.
Ultimately, a local property management company offers investors peace of mind about the day-to-day running of properties. Property management companies handle all aspects of rental and service charge collection, alongside dealing with any maintenance issues that may arise. It's very challenging to manage property from overseas, as it can be difficult to source the best contractors to deal with minor maintenance or construction problems and ensure regular rental collections.
There are many more aspects to the daily administration and management of rental properties. Professional property management providers are aware of all legalities and requirements of government and councils with regard to building or construction works in developments and residential blocks.