Why more foreigners have a taste for London’s prime property
July 2nd, 2010 by Nigel LewisIsn’t it exquisite how irony works so well in today’s galloping 24-hour news world? Last week the Tories within the coalition government delivered their promised, tougher approach to immigration and temporarily narrowed the immigration funnel into the UK before a more permanent and restrictive system comes in later this year.
Foreign tastes: a crowd of customers outside a cafe in Notting Hill, London
But the problems of sticking your political chin out like this are laid bare by agent Knight Frank, who today revealed that central London’s prime property postcodes are being kept afloat by some very high-end water wings; a flood of inbound overseas buyers.
Half of all £2 million-plus luxury properties sold in central London go to foreigner buyers, rising to 60 per cent in Mayfair, Knightsbridge and Hampstead, and on up to 70 per cent of all homes over £5 million.
And Knight Frank is not the only agent to notice this. Peter Rollins, MD of agent Marsh & Parsons, was flagging this at the end of March.
When he first started out as an estate agent, a handful of postcodes in central London were popular with mainly US and then latterly Arab buyers.
But these days the centre of the capital is a rainbow village, as a slow walk around soon reveals. Half a dozen languages can often be heard burbling away in the background and the Knight Frank figures reflect this – 51 nationalities are present compared to just 30 in mid-2008.
Russians ares the most prevalent, followed by Americans, Italians, Indian, French, UAE citizens, Germans, Greeks, Norwegians and South Africans. And don’t forget the new arrivals; Kazaks and Brazilians.
This new wealth being spent on the capital’s stucco’d central postcodes has created a market of worryingly bubble-like proportions. Prices have risen by 24 per cent in 15 months, Knight Franks says, and are now only six per cent below their mid-2008 peak.
The question is, will Home Secretary Theresa May’s desire to see net immigration fall burst it?
July 5th, 2010 at 2:18 pm
It’s true, people see London as a place to have an apartment, and many of them keep the apartment or house empty of just use it whilst in London, many of these buyers see the prime London property market like the art market, a good long term investment, prices may fall but they always come back over time.
Many are pure cash buyers so no matter what is happening in the market they just sit on the Prime London property investment/s they have, many not even interested in the sums of £20,000+ a week to rent out as film sets..it’s just not worth the effort for many of them, and that’s why it’s so hard for others to find good Prime London real estate as these guys don’t need to sell, that’s why we have seen such a growth in the use of professional property finders who are able to unearth these hidden gems for people in Prime London..
July 9th, 2010 at 3:20 pm
Maybe the reason there are so many foreigners buying property there is because most British people can’t afford to. London seems to thrive on the idea of being cosmopolitan and full of diversity so foreigners probably find it easier to move to London where they are likely to find some other foreign nationals.
July 13th, 2010 at 11:52 am
Interesting article i think other cities are also heading in the same way as credit is so hard to get these days
July 30th, 2010 at 9:11 am
This is an interesting trend and Cherie & Co as buyers agents have noticed an ever increasing trend whereby our current client base looking to buy in central London comprises of a mixture of nationalities i.e. Russian, Indian, Chinese, Malaysian, Middle Eastern, Italian, Central Asia (Kazakhstan, Azerbiajan etc), Far Eastern and from Hong Kong & Singapore. Most of our clients need our help as they are buying for the first time in central London. The main reasons for purchasing are because they believe central London to be the capital of the world, civilised society, education, business opportunities and a second home. This is a compliment to London and the UK in general as some of the global super rich prefer to live and work in London. I dread to think what will happen to the UK economy and property prices if the above group decide to leave London and move to say Switzerland, New York etc.
December 9th, 2010 at 2:44 am
I just couldnt leave your site before suggesting that I really enjoyed the quality info you provide for your visitors? Will be back often to check out brand new posts
December 14th, 2010 at 1:42 pm
Thanks outdoor deep fryer. Loving the name.
May 21st, 2011 at 7:04 am
With the progress there in property market more foreigners are just going for London’s prime property.
July 17th, 2011 at 7:03 am
Truly,London is the ultimate property destination.