IP Global, the full-service property investment company, is pleased to announce its new look Global Real Estate Outlook for early 2014.
London is high in the rankings again, a city in which IP Global invested over GBP140m last year alone after identifying a ‘ripple effect’ causing growth in London’s outer boroughs. This is being driven by the ever-increasing prices in central London pushing residents to look at alternative locations and has led to forecasts that Outer London will outperform the traditionally prime central areas of the city with 23% price growth predicted between now and 2018. While pockets of value do still exist in Prime Central London, the regeneration areas further outside the central districts are where investors can expect to see the strongest growth.
Just under 30% of London projects were sold to GCC investors last year last year with certain projects attracting significant numbers of UAE investors in particular. Their West Drayton project in Hillingdon saw 55% of sales go to the UAE, while Altus in the south of Lewisham, Lexicon in Islington and Spa Road in Bermondsey all saw around a quarter of their units sold to UAE-based buyers.
IP Global’s London projects have continued to attract attention in 2014. Their exclusive City of London project on Lovat Lane sold out within a week of launch in January following hugely oversubscribed interest in the project’s limited number of luxury apartments. Last month saw the launch of their first project in Greenwich, all 64 units of which were secured by investors within three weeks.
Paul Preston, Director and Head of IP Global Middle East, commented, “Following the success of Hilton’s Wharf in Greenwich, we can’t wait for our next London launch next month. As ultra-prime London gets more and more expensive, people should look for value in other pockets. My advice is to take a more considered look at the investment case before buying a multi-million pound Chelsea property for example, and think instead about using the same capital to invest in two or three properties around central London at lower values. That way, you are spreading your risk and diversifying your exposure as well as improving your return and income potential.”
Australia continues to feature prominently on IP Global’s radar, with opportunities in Melbourne looking increasingly good value. Rated the world’s most liveable city by the Economist every year since 2011, the Victoria capital is a major hub for education, business, culture, sports and entertainment. Prices in the city rose by a significant 8.5% in 2013, with demand driven by 1,500 new residents a week being added to the Greater Melbourne area and a very strong educational sector. Melbourne is home to more international students than any other Australian city, giving suburbs such as Caulfield – home to Monash University’s second-largest campus and IP Global’s latest project – a strong basis for sustainable local rental demand.
Brisbane remains a fabourite on the east coast, where a strong economy and high population growth continue to drive demand for housing. By 2020 the city will have the country’s largest housing shortfall of over 25,000 homes, which will only push the already rising prices higher still.
In Japan, the resort of Niseko boasts a growing international reputation as a boutique alternative ski destination, and with the Japanese economy improving, is rapidly becoming a firm favourite for investors. The currency situation currently favours overseas investors but the biggest obstacle for foreigners investing in Japan remains securing finance – a problem avoided by the exclusive vendor financing available to investors in IP Global’s Niseko project, Akazora.
For more information please contact:
Laura Westmacott I Bianca Riley
TOH Public Relations
Wednesday, March 26- 2014 @ 10:56 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.