Prime London property will continue to attract UAE and regional investments

Chesterton showcases London's luxurious ‘One Blackfriars Tower' at Cityscape Global

Dubai, October 09th, 2013: Chesterton, the international property agency established in 1805, has reported a substantial increase in enquiries from UAE and regional buyers for residential properties in London. According to Chesterton, foreign buyers continue to form a pivotal component of buyer demand, especially in the highest price bands. One London development that has been attracting especially high levels of interest is the ‘One Blackfriars Tower'. Chesterton is showcasing this prestigious project at Cityscape Global Dubai. Prime areas in London are set to grow at an average of 8% this year and this growth is being driven by strong UK and international demand and short supply in the market.

“Average London house prices accelerated in June to 6.9% on an annual measure. At £383,930 (AED2.25 million) the average house price in London is now nearly 2.4 times the national average. The appeal of a safe haven which also offers the considerable cachet of being one of the world's premier lifestyle locations as well as offering a high level of personal and property security remains irresistible for many foreign investors. With the growth in the percentage of enquiries, it is clear that this increase has not deterred Middle Eastern buyers from investing in London,” said Simon Gray, Managing Director of Chesterton MENA.

The ‘One Blackfriars Tower' will be complemented by a high-quality boutique hotel, which will commensurate with the exceptional architectural quality of the public realm. The Retail and Leisure building will sit to the south of the Tower, offering high-quality retail units. At the heart of One Blackfriars, the beautifully landscaped piazza with a water feature creates the destination.

“Around 65% of Chesterton's MENA clients are buying apartments rather than houses, mainly due to the perceived higher level of security, better facilities and ease of management, and for similar reasons, there is a general preference for new build rather than older properties,” said Samuel Warren, Head of International Residential Developments, Chesterton Humberts.

As per a recent Chesterton Humberts research, since 2000, housing completions in London have been averaging just over 18,500 units per annum. The official estimates and projections for the period 2006-31 are of around 34,000 new households every year. 

Even assuming completions were to reach their peak pre-recession levels of the 2000s of 24,000 per annum for the remainder of the period to 2031; this would still translate into an annual deficit of around 10,000 homes which equates to a potential shortfall of 200,000 homes over the period. Due to these reasons prices will inevitably come under long upward pressure.
“This is the right time to buy a property in London and we strongly believe that the ‘One Blackfriars Tower' is set to provide the investors with attractive returns on their investments. We have seen a growing level of interest from the UAE investors towards London based properties. We are bringing this prestigious project to Dubai due to this overwhelming investor interest,” added Samuel.

Designed by internationally renowned interior designers Tara Bernerd & Partners, the three collections are named after three leading British artists: Thomas Gainsborough, the 18th century portrait and landscape painter; J.M.W. Turner, revered for his Romantic and Impressionist landscapes and the 20th century Modernist sculptor Barbara Hepworth, to celebrate the cultural heritage of the South Bank. The collections offer a range of apartments with a choice of two design schemes.

“The impact of the ‘Arab Spring' also has driven MENA investments to alternative 'safe havens', such as the UAE, whilst internationally, investors from the UAE, the Saudi Arabia, Bahrain and Qatar have looked to London. In addition to the UK's stability, transparency and legal framework, all of which ensure that the process of investing is relatively straight forward, investors are further attracted to London by additional factors such as the historically low interest rates and London's position as one of the world's foremost business and tourist hubs,” concluded Simon.

Chesterton aims to cater to UAE investors who wish to expand their local or international real estate portfolios, or both, and individuals who simply wish to buy first or second homes in UAE or abroad.