Mayor of London welcomes foreign investors in Property Market

Mayor of London (Boris Johnson) welcomes foreign investment into London Property Market

http://blog.propertyguru.com.sg/11534/letter-from-mipim-day-one.html

Brett Alegre-Wood reports forPropertyGuru from the opening day of MIPIM, the annual conference for the world’s property industry.

Day one of of the event in Cannes, France, saw the Mayor of London, Boris Johnson, counter recent negative rhetoric about overseas investors in London.

London Mayor, Boris Johnson

In his speech, Johnson made it very clear that London still welcomes foreign investment and foreign investors. He warned against “slamming the door” or “turning our noses up at foreign investors”, citing international investments such as the Battersea Power Station Redevelopment and the Elephant and Castle project. He then highlighted the story of the stone used to build the Tower of London, the oldest continuously occupied building in London, being imported from France.

Johnson then made the point that just 6 or 7 percent of homes were sold to foreigners, which has remained at the same level since 1990. He said that so many times figures are being quoted that 60 percent of new builds in the capital are being sold to foreign investors, especially to Asians.

The current undercurrent of dissent amongst London residents has seen pressure from politicians, and has seen 60 of the largest developers have signed up to a new build pledge, which basically means they agree to launch properties in London to U.K. investors first, “or at least at the same time as internationally”.

Johnson then went on to paint a picture of his Vision 2020 project, which will see 42,000 homes per year being built and 400,000 in the next 10 years. A total of 33 separate opportunity areas are being identified. When asked where the space for these properties would be found his comment was “Look east, towards the Thames Gateway”.

London - The Greatest City on Earth

All in all his presentation was very upbeat and affirms that London property and the U.K. market are back on top. He stated a number of times that London was, and still is, the world’s capital and a favourite place to invest for foreign investors. He said that overseas investors are still very much welcome to invest.

MIPIM, the world’s property market, brings together the most influential players from all international property sectors. The 2014 event is taking place in Cannes, France, between March 11 and March 15.

Singapore-based Brett Alegre-Wood is an author, entrepreneur and property educator. He is the founder and Managing Director of Your Property Club and author of The 3+1 Plan, winner of the 2010 People’s Book Prize.http://property.ypc-group.com/

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Summary of main points:

1) London Mayor Boris John welcomes foreign investment in London housing market.
2) Just 6 to 7 percent of homes in London are sold to foreigners, the same level since 1990.
3) Vision 2020 project - 33 opportunity areas identified - “Look east, towards the Thames Gateway”.