FPD Savills markets London Docklands to UAE buyers

London Docklands' latest development New Providence Wharf will be officially on sale at first the London Property Exhibition in Dubai and Abu Dhabi early next month.

But is this the right time to buy a property in London? Surely the UK residential property market is overvalued and heading for a fall alongside the financial sector?

'Well, there are two parts of the market and it's a question of the supply of property and money being cheap to borrow,' says FPD Savills associate William McKintosh. 'In Docklands demand is greater than the supply of property, with 3,200 homes under construction and 45,000 staff about to move into Canary Wharf. But New Providence Wharf is a special proposition in any case.'

He explains that this development is selling off plan for occupation in 18 months time and that the final phase on sale in the UAE next week is the last one. So this will mark the completion of this huge mixed use scheme which includes a hotel. Moreover, the developer Ballymore Properties is providing a guaranteed annual gross rental return of 7% for the first two years.

'This means the buyer is isolated from the property market for three and a half years, and can ride out any downturn,' says Mr. McKintosh. 'Of course any property market has its ups and downs. But property values rose 23% last year and are forecast to rise by 10-12% this year which is very good in the present environment.

'We also have a team with us who can offer UAE buyers advice about tax issues and offer financial and legal advice, as well as a full letting and management service'.

The bad news is in the pricing. The lowest price is $450,000 for a 50 square metre, one-bedroom apartment, while the 300 square metre penthouse apartment is hardly a snip at $4.8 million. It may be unfair to draw this comparison, but a similar penthouse in the Dubai Marina would be around $600,000, if you could buy one, or one-eighth of the price.

'We have had a great deal of interest from Nationals in the UAE and have been amazed by the response,' says Mr.McKintosh. 'Indeed, we decided to come out a week ahead of the property show to meet people in advance.'

There is certainly no doubt that Ballymore Properties has an excellent record of building quality developments such as Millennium Harbour in London Docklands and the Aldgate Triangle.

Whether now is the right time to buy is another matter altogether, and a visit to the London Property Show in Dubai or Abu Dhabi next week is probably the best way to tackle this difficult question.