MIPIM 2016: Private Middle Eastern investors are starting to look beyond prime central London for better value, experts have revealed at MIPIM.
Evidence shows that over the past 12 months they have been investing in property outside traditional Zone 1 and 2 locations, up to 10 miles outside of the city centre for second homes and investments.
Joanna Leverett, head of international residential markets at Cluttons, said: “It is very much price driven. They would prefer to be in central London, but prices are so high that naturally they are looking further afield.
“They would prefer to be in central London, and want a two-bedroom flat for £2m which they are not going to get, so the move is very market-led.
“They like to buy off-plan and they like new builds because that is what they buy in their local market.”
Leverett was speaking at a session that revealed the results of Cluttons’ Middle East Private Capital Survey for 2016.
Steve Morgan, chief executive of Cluttons in the Middle East, said the investors were heartened by UK negotiations around a Brexit, but it was not a factor in their investment decisions.
The survey of 127 high net worth individuals in the Middle East showed that London was their preferred location to invest, followed by New York and then Bangalore.