London property has undoubtedly gone from strength to strength during the financial crisis, with real estate investment the asset of choice for overseas investors looking for a safe haven for their money. However, with prices now sky-high, some buyers could be giving up on the capital and turning their attentions elsewhere in search of more affordable property.
The Emerging Trends in Real Estate Europe 2013 report, published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), revealed that 54 per cent of investors now consider London property to be overpriced. Consequently, foreign investors are migrating into other UK regions and the West Midlands is proving to be one of the most popular.
Alistair Reason, PwC's Midlands-based real estate expert, told the Birmingham Post: "As the London market shows signs of overheating, we have noticed an upturn in interest from inbound investors, including some from the US, who are buying up Midlands-based stock, which is currently held by property holding companies and banks."
However, it isn't just high property prices in the capital that are driving investors into new territory. In fact, it may be a sign of renewed confidence in the property market. "Real estate investors have taken comfort from the fact that they have survived the turmoil of the past few years and are now turning their attention to the best bets for future investment," Mr Reason said. The report also showed that 2013 will see the return of risk in the market, with investors willing to test the water of new markets and assets. While buyers are still unsure about southern Europe, they are willing to front the money to buy property in more stable sectors and find new opportunities.
PwC claims that investors are also looking to explore "off-the-radar locations", get to grips with local economies and source from local operators - a trend that bodes well for the UK market as a whole. While London will no doubt continue to be Britain's main hub for investment, interest in regional areas will help to give an economic boost.