London remains one of the epicentres of the world; modern and cosmopolitan, yet with a history dating back nearly two millennia. An ever-evolving city that flows with the times, it is a vibrant cultural, educational and financial hub where past, present and future meet.

London’s real estate has always been lucrative. Due to constant undersupply, residential property in this global hub is in high demand, and especially sought after by foreign nationals as a resilient, attractive long-term investment option.

Recognising this potential for sustained growth and profitability, Malaysian interest in London’s property market has also remained strong, unaffected by the challenges of Brexit and Covid-19. In 2023, it was estimated that 5.5% of all London properties were bought by Malaysians (source: Benham & Reeves).

So why are Malaysians purchasing residential properties in London? Many do so for personal use – as accommodation for children who are studying or working there, for instance. Some leverage the capital appreciation of the property to offset their children’s education costs.

Moreover, London has seen a significant rise in private renting and rental growth due to high demand and under supply after the pandemic. As such, purchasing property for rental purposes with potential high returns also attracts Malaysian investors.

For others, acquiring London properties is simply a strategic investment opportunity – a chance to diversify their portfolio and invest in a stronger currency. Favourable market conditions for the ringgit against the British pound have also helped.

In terms of location, “going East” is trending. London’s rapidly transforming East End offers rich pickings for foreign investors looking for promising real estate benefiting from strong transport connections.

Multiple docks and waterways – the lifeblood of “old” London and the capital’s trading history – are being reinvented to meet the demands of modern living.

Upscale new developments, such as the Canada Water masterplan just south of the River Thames, are at the forefront of embracing 21st-century needs and the city’s changing landscape.

Delivered by British Land – a leading property development and investment company in the UK – in partnership with AustralianSuper – Australia’s largest superannuation fund – Canada Water is set to become one of the most sustainable masterplans in central London.

This 53-acre, mixed-use scheme will comprise around 2 million sq ft of workspace for around 20,000 jobs, 1 million sq ft of retail, leisure, entertainment, education and community space; and between 2,000 and 4,000 new net-zero homes. It is the largest Zone 1 or 2 London development of its kind – making it a-once-in-a-generation project.

Nestled amidst 130 acres of woodlands and parks, bordered by docks and waterways, The Founding is Canada Water’s flagship residential offering, part of the first phase of the masterplan.

The Founding is a collection of 186 studio, one-, two-, and three-bedroom apartments – all with floor to ceiling windows and private balconies offering panoramic views across London.

This spring, British Land launched its Upper Lofts Collection at The Founding, a boutique collection of properties situated on the prime top floors of the 35-storey building. First residents will start to move in from winter 2024.

“The Founding presents a rare opportunity to purchase a home at the very start of a high-profile masterplan and be a part of an incredible revitalisation story. A whole new district and destination for London will be created at Canada Water,” said Emma Cariaga, British Land’s head of residential and joint head of Canada Water.

But what are the regulatory challenges? Very little, in fact, and any Malaysian can invest in London real estate. The UK legal system and the process of purchasing new-build property are fairly straightforward and transparent compared to many other jurisdictions.

However, engaging a trusted sales agent and a solicitor with expertise in international purchases of UK property is a must. To ensure compliance with anti-money laundering laws in the UK, disclosure of the source of funds for purchases is mandatory for all buyers. This, too, is quite straightforward and can be handled with guidance from a good solicitor.

In addition, for convenience, security and assurance, Malaysian buyers can rely on reputed agencies such as JLL Property Services international, who provide comprehensive support throughout.

“We offer a one-stop solution, including assistance with legal processes, mortgage arrangements, property furnishing, tenant finding, rent collection and resale, to optimise buyers’ investment returns,” said Chong Shu-Ling, residential division senior sales negotiator at JLL.

If the lure of London’s lucrative property piques your interest, visit www.thefounding.co.uk for more details.