International investors are piling into property crowdfunding

By Bridging Loan Directory 8th May 2018

Shojin Property Partners has seen a 52% surge in overseas individuals investing in UK crowdfunding development projects, since launching their platform last year.

Most of these buyers are from the Far East, Middle East and East Africa and attracted by the weak pound and the hands-off investment that crowdfunding offers. International investors now account for almost 43% of all people who invest in crowdfunded development projects with Shojin. The most popular investment projects for overseas investors have been high yielding equity investment opportunities.

International investors have always seen the UK and more specifically the UK property market as an attractive place to invest. This is because the UK is considered to be a safe haven compared with other economies around the world. Over recent years, the UK has seen international investment continue to grow thanks to technology and crowdfunding, which makes it more accessible for investors to invest anywhere in the world.

Research from Hamptons International reveals that 30% of homes across London were sold to international buyers last year. Overseas investors bought up more than half of all residential properties for sale in London’s most exclusive postcodes in the last half of 2017. The proportion of homes in the capital’s prime central spots bought by foreign investors hit the highest level in five years, with a significant increase in Middle Eastern buyers boosting the figures.

Jatin Ondhia, pictured, CEO of Shojin Property Partners comments:

“International investors have always considered the UK property market to be one of their top asset types, as it offers them a safe and secure investment.

“London is particularly attractive to overseas investors now, thanks to falling property prices and great capital growth potential over the next 10-15 years. Property in the capital has always been a stable asset and we have seen a large spike in overseas investor demand for our development projects in London.

“We have recently launched new investments products featuring bridge loans, mezzanine loans and buy to let which will allow investors to spread their risk across the entire investment spectrum and diversify their property portfolios.

“Our latest opportunity is an ISA eligible investment in Zone 1, London close to London Bridge and the Shard. This is a fixed return of 17% per year over 12 months. Investors can invest up to £20,000 through their ISA and benefit from tax free savings. This development is seeking planning permission to build a 10-storey block comprising of part office and part hotel uses.”