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Increased overseas appetite for Residential Development Investment (RDI)

9th November 2018
It has been a busy month for our RDI division with consistent activity amongst the new homes market and increased overseas appetite. The start of Q4 has seen an influx of new development stock on the market with us also expanding our presence beyond London and into regional areas for investors looking to purchase at a lower price point whilst benefitting from higher than average rental yields. Sotheby’s RDI presents prospective buyers with a range of investment opportunities from boutique projects to larger schemes, encouraging interest from a breadth of buyer types. As ever, we have seen strong interest amongst the overseas market with China making up the vast majority of recent sales. Catherine Che, from our China Desk has seen most activity around the £1m- £2m price bracket in London’s zones 1 and 2. We have also seen the appetite grow from the US market over recent weeks. Perhaps dictated by the relocation of major firms such as Apple and Google, we are seeing a high level of interest amongst American investors for our projects located in areas such as Covent Garden and Nine Elms. Property investors from areas such as Nigeria, Turkey and South Africa have also significantly contributed to enquiry levels for our off-plan properties, seemingly looking to benefit prior to any foreign buyers tax coming into play. In an evolving market with a necessity for accessibility, we have found that our most receptive audience increasingly comes from our social media platforms, especially at the higher end of the market. Instagram and WeChat have are invaluable tools in promoting our developments globally, allowing engagement with prospective buyers in a less pressured capacity. Working with our developer clients to host events at our different projects has also been a great way to generate recent business both locally and globally.  From a Middle Eastern breakfast morning to a local buying agent talk, we have seen great traction. In short, although there is some trepidation, the general message is that there is resilience in the market and our recent new homes transactions prove that London remains a safe haven for long-term investments. Eloise St Clair-Charles 

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