London: With an investment of $400 million, Indians are the largest buyers of land among overseas investors in central London, accounting for a 55 percent share in the second quarter of this year, says a leading commercial realty services group.
The largest such deal by an overseas investor was also struck by an Indian entity, India Bulls, which purchased a property in upmarket Hanover Square in Mayfair, close to Oxford Circus, for $260 million, says the report prepared by CBRE South Asiaa.
This closely follows the acquisition of New Court on Carey Street, that was once home to the city’s bankruptcy courts, for $150 million by the Mumbai-Based Lodha Developers, the report adds.
Both are due to be converted into luxury housing developments.
“Overseas investors, especially those from India, displayed a strong interest in the development opportunities in Central London during Q2 of 2014, supported by strong market fundamentals and recovering UK economy,” said CBRE chief Anshuman Magazine.
“This considerable interest in residential conversion opportunities shown by Indian investors has mainly been due to the greater return on value in this market,” Magazine added.
The realty group said leading Indian corporate houses and non-resident Indians in London were taking advantage of the opportunities in London, a stable destination for investment in the realty space, that is now seen growing with economic recovery.
“As a result of the reported growth in the UK economy, investor appetite for development opportunities – including for housing – is expected to remain strong, going forward,” the group said.
Land purchases in London increased by 13 percent over the second quarter to top $1.4 billion.
Going forward, the group said, a strong demand for residential-led land sales had also caused the appetite to spill over to other areas around London and should reflect in heightened commercial land transactions in the second half of the year.