Chinese Invest Billions Into London Property Market

image

Chinese investment in London property market is increasing day by day since last few years. According to the reports of a Chinese daily newspaper remarkable increase in London property market was noticed since 2010 as it had attracted Chinese investors like a magnet attracts iron, which is not supposed to stop in near future. The report was based on the investment of more than one billion pounds in two projects in London by a state owned company of China which had built one of the tallest towers in its country.

Main reason of increasing investment from China in London property market was that it was considered as the economic center of Europe which can enable Chinese investors to influence global markets as per the statement of Zhang Yuliang, chairman of Greenland, state owned Chinese Builder Company. For that reason Greenland invested 600 million pounds through estate agents London in the west London to buy the historic Ram Brewery in Wandsworth as its first venture in the capital city of UK which had a prior permission of building a 36 storey tower including 9500 sq m for bars, restaurants and shops alongwith 166 apartments. Mr. Zhang further told that construction of apartments on 3700 sq m area in the financial district of Canary Wharf was also proposed by the Chinese company in near future due to because of increasing trade activities by the Chinese people in London and the considerable increase in the price of real estate in London since last two years.

Reports released in the third quarter of last year by the Bethnal Green estate agents had revealed the fact that 1500 percent rise in Chinese investment in London property market had been noticed since 2010. This increasing Chinese investment upto 1.9 billion pounds in London had reached to more than half of the total Chinese investment in the whole Europe. It had positioned Chinese investors on the third position, after United States and Germany, among the buyers of non-domestic properties in London.

The landmark London property deals during last year included the purchase of Lloyd building for 261 million pounds by Ping An Insurance. The investment of 700 million pounds in building a five star hotel near Thames River by Dalian Wanda Group in London is another high class Chinese investment in London property market. The talks about the take over of a commercial park in London between Blackstone, a private equity group in US, and China Investment Corp, China's sovereign wealth fund, can also be considered as another step in increasing Chinese investment in London property market.

The Chinese investment in the overseas prime properties had been attributed to the economic growth of their country due to the appreciation of their currency, Yuan, in recent years which had made it affordable for the Chinese companies, according to renowned Bethnal Green estate agents and estate agents London.

Thus the reputation of UK, due to its stable political system, legal transparency of high level and stable economic system, had attracted the investors from all over the world including Chinese investors to invest billons of pounds in London property market.