"Overseas investors have shown strong interest in development opportunities in the Central London during Q2 2014, supported by strong market fundamentals and the recovering economy," said Peter Burns, executive director of Central London Development at CBRE. "As a result of this growth, investor appetite for development opportunities including residential is expected to remain strong. There has been continued growth in the London residential market since the financial crisis and strong demand for residential-led land sales has caused demand to spill out into markets such as Southbank and west London," he added.
The 'Central London Property Market Review: Cautious Optimism' report released by CBRE South Asia points out that Indian investors have been acquiring large lots mainly for residential conversions. India Bulls' purchase of 22 Hanover Square, representing for 155 million pound, was the largest deal in the second quarter of 2014. This followed the acquisition by the Lodha Group of New Court in Carey Street in early 2014 for 90 million and 1/3 Grosvenor Square for 306 million last year. Both schemes are due to be converted into residential developments, with the Carey Street scheme is set to deliver 148 new flats.
The year 2014 has seen general heightened activity in land acquisitions from overseas purchasers in central London, accounting for 53 per cent of take-up in the second quarter, with a large proportion (42 per cent) flowing from Asia.