Globalisation is the process where people, companies, and governments of different countries interact and integrate by advancing international trade, technology, and investment. Globalisation has a huge effect on culture, environment, political systems and economic development (Whitson and Macintosh 1996). Due to globalization, some cities have grown bigger than before. Cities like New York, Chicago, and most importantly, London, their success can be associated with globalization. Globalisation gives a favorable platform for international capital transfer movement (Spatafora and Luca 2012)
A big portion of international money transfer goes to investment thus development of cities and towns. Today, foreign investments have rapidly advanced counting to globalization. Globalization gives investors a chance to choose a city or town to establish their investment .Metropolitan cities like London attract international investors.
Some external investors are running facilities, properties and other forms of investment in the city of London (Sadiq 2001) and this has in one way or another facilitated London’s development expansion. Today it sits among Europe’s richest cities constituting 22% of the United Kingdom’s GDP. Since the end of Second World War, London’s development has continued to expand.
There is an argument that out of its global and local relationship, London is the fifth largest economy in the world. According to (Teoh, et al 2016)
London has advanced based on its network interdependencies with other international financial centers. During the colonial period, London benefited from being the center of the global money system. Some international insurance and banking companies have their headquarters in London (Sachs 2008).
For instance, Barclays and standard chartered banks are British but international banks. A larger portion of their benefits is channeled back home for investments. London plays homage to some international security firms like Group 4 Security, which is offering its services across the globe hence considered a leader in Eurodollar market (Ruggie 2008).
Today, London has excelled in the housing sector. Its housing state is a total reflection of a global city. Due to the reduced exchange rate of the sterling, investors that are more international are finding it beneficial to develop properties in London. In business, profit is key; as an investor, one will only invest where his profit returns will be high. London’s investment policy is friendly, and generally, the UK has attractive tax policy to investors. For instance, London was labeled the best city for real estate investors in 2014.
Areas such as Kensington, Westminster, and Chelsea homes are among those sold abroad. Most of the houses sold are for rental investment and foreign companies dominate rental-housing investments. Some foreign investors consider London a secure and investment friendly city (Rulli, Saviori, and D’Odorico 2013). UK’s political stability has encouraged investors from unstable countries to invest their wealth. For instance, people from the Middle East and Africa have joined London’s investment race. London’s recession security has also challenged more abroad investors to consider London as an investment destination. On the other hand, United Kingdom has a longer lease than other European countries. The UK gives 15 years whereas other countries have a variation of 6 to 9 years (Mann and Von Moltke 2002).
For the said reasons, London continues to attract more foreign investors. It is also important to note that the worlds’ most-watched football league is in England. The English Premier League has attracted investors who own London clubs like Chelsea FC(Moran 2011)
. Players playing in London clubs and majority are foreigners, pay taxes, and some have purchased properties in London therefore, Central London in an investment epicenter. More investors more so those with interest in housing give top priority to that region (McRae and Cairncross 2017). Most European cities are in the process of emulating the London investment model, but they still dwarf the UK capital (Baer 1972)
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